It seems that the larger speciality food retailers are waking up to the fact that consolidation of supply is the only way forward in the sector. I am encouraged by three conversations I have had recently with large retailers suggest that they are waking up to the fact that the way to efficient retail is to reduce their number of suppliers by consolidation by using wholesalers.
Two of these were with garden centre groups, one who had just under 200 food suppliers and one with just over 200 suppliers, and are both taking active steps to find a way of buying the same number of products with fewer suppliers. They were both previously inundated with work simply due to the number of suppliers needing orders, making deliveries and paying for those deliveries. The manpower required for this number of suppliers was driving them to inefficiency. (more…)