“Bullying” supermarkets give supply chain bad reputation

SUPERMARKET CHAINS ARE giving procurement a bad name due to their “bullying” tactics, says the Chartered Institute of Procurement and Supply (CIPS).

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The CIPS surveyed over 1,000 supply chain professionals and found almost 90% believe tactics such as ‘pay to stay’ charges are a common example of bullying which give the industry a bad reputation. The charges force suppliers to pay fees for supplying their goods and are just one of the many examples of poor practice.


Other issues highlighted in the survey centred on intentional late payment, which 18% of respondents thought was the worst tactic, long payment terms, retrospective discount charges and payment for point-of-sale promotions.


David Noble, CIPS Group Chief Executive commented; “Our members are unequivocal: the retail sector is not doing enough to clean up its act after years of scandals. It’s time the industry sat up and took notice”.


“Consumers want to know the goods they are buying are procured in a fair and transparent manner. Hiding behind the defence of being ‘a buyer’ rather than a procurer is an abdication of responsibility. Appropriate professional training is essential if we are to see the real step change we need.”


Noble added that the “mean-spirited, opaque supplier chargers” were “a blight” on the UK economy.


“They impact the bottom line of small businesses, threaten job security and impact the quality of products” he said.


The survey follows on from earlier research from the CIPS which found only 11% of suppliers had visibility in their supply chain.


Footprint previously reported on the impact supermarkets price cuts are having on the supply chain in January. You can read the full story here.