Tesco looks set to reorganise supplier deals
Tesco looks set to reorganise supplier deals
According to a recent report in The Sunday Times Tesco is soon expected to announce radical changes to the way it works with suppliers.
The Sunday Times report indicates that chief executive, Dave Lewis will be scrapping the complex rebate schemes and penalty feeds in favour of a simpler system based on sales volume. An insider is quoted in The Sunday Times as saying: “If Tesco sells more of the product, the supplier will cut the price.”
The anticipated change follows the debacle last year when Tesco was forced to restate its accounts when it materialised that £263 million of profits had been wrongly recorded.
The impact on supermarket rivals remains to be seen but if the overhaul is announced on Thursday, as anticipated, it will bring the grocery industry and its dealings with suppliers into the spotlight once more.
