It's not often I discuss retail procurement but sometimes it strikes me that there's something worth saying beyond stating the blindingly obvious. Tuesday's Daily Mail was one such occasion. Two procurement issues were separately discussed. The first article anticipated an announcement in Wednesday's Queen's Speech that major supermarkets will be fined, named and shamed, if they coerce their small suppliers unreasonably in squeezing prices, changing contract and payment terms. That sounds a reasonable piece of legislation but I wonder how that will pan out in reality? I like the sentiment but this presents a new strap-line for all those mega-posters celebrating the local sourcing of the major supermarkets - will they now shift to a unique selling proposition of 'fair deals for local providers'? Will they now move their supply base away from local providers to lowest cost providers? Either way the procurement strategies of the major supermarkets are now in disarray and instead of creating competitive advantage may comprise sales - not a happy place to be in.
Set this scenario alongside public procurement austerity strategy and
