Leaked memo on Asda's supplier practices
Supermarket advised buyers to play 'good cop/bad cop' to try to reduce the cost of produce
By Chloe Ryan
Sunday, 10 October 2010
A leaked document has shed light on the tactics proposed by an Asda director to get better terms from the supermarket's suppliers.
The secret memo, issued in 2009 as a guide for the retailer's buyers, tells them they must "buy for less". In the introduction, commercial director, Phil Briggs, tells buyers to take advantage of the fact that "our suppliers are hungry for volume [growth]. It is the lifeblood of their business".
The 88-page guidance warns buyers that negotiations will not be easy, and they should use techniques such as "good cop/bad cop" in meetings. Asda can make available a "bank of experienced negotiators" the document says. "Non-delivery is not an option," buyers are warned, but reminded to "have fun!"
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Last Modified - 28th December 2010