Sting in the tail of technology push by supermarket giant

 In Australia, Coles, NewZealand

IT LOOKED like a lifeline being thrown to struggling food manufacturers: a new technology rollout that promised them big cost savings.

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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.

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Coles wanted payment, from day one, for savings suppliers had never seen and – in the way of information technology ”advances” – may never receive.

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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…
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