Thursday, 10 January 2013

Jessops snaps: another buyer brought down by suppliers

Founded in 1935. Brought down by post-Christmas credit squeeze from suppliers. 2,000 employees no longer smiling for the camera.

I'm not going to repeat what I have cautioned previously about Lotus Cars and Comet. it's suffice to say that another vacant lot will appear on many high streets now that Jessops has gone into administration. Brought down as a result of suppliers losing confidence in their buyer (although it is fair to say that the integration of cameras in mobile phones must have increased the risk).

This brings additional personal stress for 2,000 employees - the real casualties. That's 2,000 individuals who were 'strivers' and voters, who along with their families may not be particularly benevolent at the next local and general elections!  It also begs the question 'Is the local government strategy to revitalise the high streets fundamentally flawed?' Those responsible for local economic development strategy could benefit from procurement risk management insights too.

For procurement practitioners it is another lesson that power in the buyer/supplier relationship has fundamentally shifted. It is only a crazy buyer who wouldn't now recognise that sellers, more than ever, may be their nemesis or even always available - sophisticated supplier strategies are now required as part of procurement risk management. (I also alluded to this yesterday when I discussed the ability of MoJ to assume the third sector would always be at their beck and call).

You have been warned and warned and warned!

P.S. 11 January 2013: The Times has interestingly made the following comment today:
"It is believed that last year Jessops began to take a more combative attitude towards the big Japanese suppliers, such as Nikon and Canon, which resulted in relations deteriorating." 

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