FINDING SUPPLIERS Supply in demand

Retailers should play the long game when looking for business partners, writes Max

Schwerdtfeger

Retailers have much to gain from using local suppliers in their store, from cutting costs and emissions in their supply chain to improving their reputation with new and existing customers.

They should focus on flexibility and availability when it comes to finding the right set of local suppliers to ensure they are keeping costs down and providing what their customers need in terms of price and quality.

The need for this approach, while always there to a point, has been exacerbated by recent supply issues, as well as the cost-of-living crisis, which, in some cases, have required retailers to reassess where their produce is sourced from.

According to a Newtrade Insight report published in the first quarter of 2023, 28.5% of retailers said they were looking to work with more local suppliers to cut costs and their carbon emissions.

Additionally, last year, Newtrade Insight revealed that just 4.3% of retailers said they were happy with the service they were receiving from suppliers when it comes to providing value for customers.

Satisfaction with suppliers is affected by numerous things, the most pressing being the margins retailers are getting for the produce they are then selling to customers, as well as availability.

Some retailers previously told RN that the Covid-19 pandemic had affected their ability to get the right products on their shelves when it was needed.

This, in turn, accelerated the need to shop locally, as it became easier to ensure supply when the suppliers were only a few miles away, shortening delivery chains and allowing more fresh produce to be brought in at shorter notice.

It also gave retailers an advantage when measured against major supermarkets, especially during the pandemic.

This appears to be the case still, to a certain degree, with some retailers reporting that while the pandemic may be over, the persisting supply issues make it more beneficial to stock locally sourced goods.

Working with local suppliers comes at the risk of increased cost, but the benefits can outweigh them in the long run if the right partnerships are made and retailers have more control over what they’re bringing in.

Chloe Taylor-Green, from Spar Western Downs in Staffordshire, says categories that involve