Consumer goods supply chains are facing a turbulent time as the COVID-19 pandemic has changed the way people shop and consume.
The foodservice sector is heavily curtailed due to restrictions, and take-home grocery is taking up the slack. A sharp increase in global commodity prices and other cost inputs, such as packaging, has also been observed.
Private label suppliers need to pass on this price rise, but retailers have pushed back the idea because they feel that both consumers and competitors will not to accept it.
In addition, many suppliers even opt to absorb the hit and hope for the best without even bringing up the matter.
In 2008 and 2011, the industry saw business fail, as well as increased food fraud and food integrity incidents.
The alternative is to communicate openly within the supply chain and work together to find solutions where possible and pass on the increase in prices where needed.
A collaborative mindset is necessary for both private-label suppliers and retailers to achieve this. Suppliers require great strategic, communication and negotiation skills.
It is imperative to find shared solutions at a time when costs are rising in private label supply chains.
To address the matter, the IPLC (International Private Label Consult) team is conducting a webinar on 16 June to gather perspectives from both sides of the table, and discuss modern negotiation skills.
IPLC managing partner Koen de Jong will moderate the session. The speakers include Robertus Lombert, Jonas Kærgaard Petersen, Malachy O’Connor.
The 90-minute webinar will be available in two time slots on Wednesday, 16 June: 10:00 hours CET and 15:00 hours CET.
To register for the webinar, click here.
International Private Label Consult is a consulting firm specialising in strategic consultancy services and offers project management support to manufacturers and retailers.
With a broad and unrivalled understanding of the private label industry, the firm helps clients with a pragmatic and action-oriented approach.
Founded in 2003, IPLC has been involved in many international assignments for manufacturers, retailers and supply chain players.
IPLC has offices in the Netherlands, United Kingdom, Ireland, France, Spain, Belgium, Italy, Portugal, Denmark and Russia.