Retail business models are under pressure as they adapt to cost inflation, online and discount competitors, and rapidly changing customer needs.
Every part of the business is under increased scrutiny, including the retailer’s relationship with suppliers. As a result, some retailers have taken to squeezing their suppliers harder. While this can yield short-term benefits, we are increasingly seeing a trend for retailers to work with suppliers to create new sources of value and deliver higher, more sustained savings.
This article describes the steps to move supplier relationships away from a “them vs. us” mindset, unlocking bigger savings by focusing on improving the efficiency of the supplier-retailer system and redesigning it for mutual benefit.
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