Supermarkets Forced To Create Contingency Plans For Suppliers

Tue, 16 Dec 2008

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The economic downturn has caused Britain’s leading retailers to create emergency supplier plans as fears grow about the future of some UK food suppliers .

According to a report in the Observer, some of the UK’s major retailers, including supermarket giants Asda and Tesco, have drawn up contingency plans to cope with the potential collapse of their suppliers .

Tesco said it is supporting suppliers during the economic slump by informing them of future orders to assist with planning. However, the retailer has been criticised this year for changing supplier contracts and requesting price cuts and back payments.

Asda has reportedly been examining its supplier base and looking at potential alternatives to replace any that collapse during the coming year.

Earlier this month, The Gap Partnership said supermarkets must work on creating more constructive relationships with their suppliers .

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