Sting in the tail of technology push by supermarket giant
IT LOOKED like a lifeline being thrown to struggling food manufacturers: a new technology rollout that promised them big cost savings.
With manufacturers under pressure from cheap private label imports and caught in a vigorous campaign to cut supermarket prices, the forecast savings represented a boost they desperately needed. Only later did they discover the lifeline Coles was offering threatened to drag them further under.
Coles wanted payment, from day one, for savings suppliers had never seen and – in the way of information technology ”advances” – may never receive.
The manufacturers received a bill, sometimes in the hundreds of thousands of dollars, of how much Coles expected to be paid for the new system. Sydney Morning Herald – Read more…