Morrisons Makes 12 Pledges to Suppliers
UNITED KINGDOM – As competition in the buy-side segment continues to tighten, retail companies across the board are shifting strategies in order to jump to the front of the pack. Morrisons is now the latest to unveil a new plan for streamlined growth with a set of 12 pledges to overhaul its system and improve relations with suppliers.
The chain unveiled the new list of commitments during its annual supplier conference. According to news source IGD Retail Analysis, Commercial Director Darren Blackhurst asserted that buyers must also “listen,” “show mutual respect,” and “act with honest and integrity.”
In a similar vein, Morrisons has also put forth four tiers of supplier partnerships to look for further efficiencies and relationship opportunities. The tiers involve trusted strategic partners, transactional suppliers, and more engaged suppliers who will receive preferential access to the senior team of Morrisons. The highest tier will have regular access to the chain’s Chairman and CEO, along with improved access to Blackhurst and subsequent category directors.
The set of 12 commitments, titled The Way We Work with Suppliers, are as follows:
- We put customers first.
- We are always looking for ways to innovate and improve our business so that we serve our customers better.
- We value innovative suppliers.
- We listen and take time to understand each other’s business and the challenges we face.
- Mutual respect at all times.
- We are professional and clear in our approach and act with honesty and integrity.
- We are fair and reasonable with our requests and in our dealings.
- All our agreements are simple to understand and we agree them in a timely manner.
- Everything is confirmed in writing and is forward looking.
- We focus on driving mutual, profitable growth (volume; sales; cash) that will enable us to re-invest to drive future growth.
- We build and value long-term relationships with key suppliers (at all levels of the organization) to facilitate investment decisions.
- We do what we say we will do; with transparency and reasonable notice.
- We pay on time and work hard to resolve disputes quickly.
- We focus on costs and economies of scale when agreeing terms.
- We deal with all suppliers in the same manner and strive for simple ways of working.
These new initiatives were composed by the chain in efforts to improve its working relationships with suppliers, which will allow Morrisons to continue the forward trading momentum for the company. Morrisons itself pledged that the new commitments will allow the chain to “pay on time, and work hard to resolve disputes quickly.”
Morrisons further detailed to IGD that the new focus will allow it to place more emphasis on everyday low price strategies with fewer promotions running. IGD also reported that this announcement comes soon after Morrisons reduced its number of commercial types of income from 37 to just three in recent months.
The UK-based chain is not the first to place a new highlighted focus on the supply chain in efforts to achieve greater company growth. As we recently reported, Walmart has also announced specific changes to its relations with suppliers.
Will other chains soon pick up this new trend that focuses on the supply-side, and what impact will it have on the industry? AndNowUKnow will break the latest as it unfolds.