The relationship between Suppliers and Retailers has evolved over time. Now we reached a point where the biggest (implied) supplier is actually a retailer. Needless to say, this influences the way Suppliers and Retailers collaborate
There is a long standing discussion on how to optimize the interface between the suppliers and retailers. Over the years many successes have been achieved in making this interface more efficient – in part fueled by the ongoing consolidation of both the supplier ad retail industry.
It has proven elusive however to engage in collaboration across the supplier – retailer interface focused on truly growing the total pie. This is to some extend understandable: many retailers are at the same time “implied” suppliers through their private label products. In fact, Walmart is in terms of “implied” supplier role larger than the largest suppliers such as Nestle, P&G, and Unilever. This does not mean that collaboration focused on growing the entire pie could not work. What it does mean is that new business models will be required. Some companies are showing the way.
Read more: “Collaboration – but not as we’ve known it – the changing relationships between suppliers and retailers” WP – Collaboration But Not As We Know It – Gillis Jonk, Jos Leijnse, A.T. Kearney White Paper related to the 52nd CIES World Food Business Summit 2008