Cash for Coles: making suppliers pay
In August 2011 representatives of supermarket giant Coles approached energy drink maker Red Bull for a $200,000 payment in what insiders at the supermarket called, quite plainly, the ‘‘direct ask approach’’.
Indeed, Coles had calculated the value of the benefit to Red Bull of its improved supply chain at $400,000 but thought it would be a sport and only ask for half that amount from the beverages company.
The casual request for the cash was part of a pilot program where Coles sought payments from some of its key suppliers, and the biggest suppliers in the Australian grocery sector, to help pay for what it claimed was improvements to the supermarket’s supply chain. Sydney Morning Herald – Read more…
Indeed, Coles had calculated the value of the benefit to Red Bull of its improved supply chain at $400,000 but thought it would be a sport and only ask for half that amount from the beverages company.
The casual request for the cash was part of a pilot program where Coles sought payments from some of its key suppliers, and the biggest suppliers in the Australian grocery sector, to help pay for what it claimed was improvements to the supermarket’s supply chain. Sydney Morning Herald – Read more…
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