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Morrisons Makes 12 Pledges to Suppliers

Morrisons Makes 12 Pledges to Suppliers

Wednesday, October 12th, 2016

As companies across the buy-side sector examine new strategies to shift towards the front of the pack, the Morrisons chain is the latest to unveil a new supplier-based plan to streamline its growth and efficiencies. The UK-based chain has released a set of 12 pledges to improve its relations with suppliers and overhaul its current system. 

Darren Blackhurst, Commercial Director, MorrisonsThe list of commitments was unveiled at the chain’s annual supplier conference, according to news source IGD Retail Analysis. Commercial Director Darren Blackhurst asserted that through this commitment buyers must also “listen,” “show mutual respect,” and “act with honesty and integrity.”

In addition to the 12 commitments, Morrisons has also put forth four tiers of supplier partnerships for the company. The highest tier of suppliers will gain regular access to the company’s chairman and CEO, along with improved access to Blackhurst and the appropriate category director. Other tiers involve trusted strategic partners, transactional suppliers, and more engaged suppliers who will receive preferential access to the chain’s senior team. 

This collection of initiatives was undertaken by the chain in order to improve its working relationships with suppliers, and thus keep its trading momentum moving forward for investors. 

The set of 12 commitments, titled The Way We Work with Suppliers, are as follows:

  • We put customers first.
  • We are always looking for ways to innovate and improve our business so that we serve our customers better.
  • We value innovative suppliers.
  • We listen and take time to understand each other’s business and the challenges we face.
  • Mutual respect at all times.
  • We are professional and clear in our approach and act with honesty and integrity.
  • We are fair and reasonable with our requests and in our dealings.
  • All our agreements are simple to understand and we agree them in a timely manner.
  • Everything is confirmed in writing and is forward looking.
  • We focus on driving mutual, profitable growth (volume; sales; cash) that will enable us to re-invest to drive future growth.
  • We build and value long-term relationships with key suppliers (at all levels of the organization) to facilitate investment decisions.
  • We do what we say we will do; with transparency and reasonable notice.
  • We pay on time and work hard to resolve disputes quickly.
  • We focus on costs and economies of scale when agreeing terms.
  • We deal with all suppliers in the same manner and strive for simple ways of working.

The company detailed to IGD that this new focus will allow the chain to place more emphasis on more on everyday low price strategies, with fewer promotions. This move comes after Morrison recently reduced its number of types of commercial income from 37 down to just 3 over the past few months. 

Morrisons also pledged that the chain itself will “pay on time, and work hard to resolve disputes quickly,” according to IGD. 

The Morrisons chain is not the first to undergo a new focus on suppliers in efforts to achieve greater growth. As we recently reported, Walmart announced its own specific changing emphasis on suppliers.

What impact will this pledge have on Morrisons’ buy-side presence, and will other chains pick up the supply-side focus trend? Deli Market News will unveil the news as it unfolds.


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