A Perspective on UK Supermarket Pressures on the Supply Chain

Denis R. Towill

European Management Journal, 2005, vol. 23, issue 4, 426-438

Abstract: Evidence obtained by the Competitions Commission suggests that hidden but potentially severe financial pressures are being imposed on UK supermarket suppliers. We identify four such major routes, including reverse cash flows resulting in subsidised acquisition costs. A consequence is that a particular derivative of lean supply dominates this market sector. But unlike the automotive industry, the goal is not collaboration, as with suppliers clubs. Instead, category management tends to favour large suppliers better able to buffer and combat both transparent and masked pressures on the bottom-line in this highly competitive scenario.

Keywords: Acquisition; costs; Lean; supply; Category; management; Supermarket; strategies; Hidden; charges (search for similar items in EconPapers)
Date: 2005
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