With Retail Buyers theoretically operating on two KPIs - Increases in Sales and Gross Margin, a key issue for suppliers has to be the extent to which buyers are driven by the Big Issues of Recessionary impact upon overall company profitability (ROCE)
Given that ROCE performance drives the share price, and many buyers are being incentivised via share options, then perhaps it is reasonable to assume that they can be encouraged to take a more holistic view in the day-job and add more productive financial measures. The fact that they resort to (crude) demands for lower prices to increase sales and gross margins is just what they do…almost as bad as KAMs being driven by boxes achievement.
The Recession provides a need and an opportunity to do better…
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