Relationships between retailers and their suppliers that shifted during the Covid-19 pandemic are morphing again, as companies cope with continuing changes in consumer spending and high costs across their supply chains, The Wall Street Journal reports.
Walmart Inc , Whole Foods Market and other large retailers are pressing suppliers to cut prices for goods, while others have been canceling orders for products from clothing to appliances. That is a stark change from as recently as a year ago, when companies were looking to rush in merchandise to restock depleted store shelves, the business newspaper reports.
Logistics experts say the retailers are looking to use their scale and buying power to gain greater control over their supply chains now that shortages have generally eased and supplier-buyer dynamics return to pre-pandemic norms.
“We’re starting to see the power shift a little bit back to buyers again,” Rob Handfield, a supply-chain management professor at North Carolina State University, told The Journal. “They’re starting to become a little more competitive with their suppliers and putting more pressure on them.”
More specifically, retailers are being increasingly cautious about ordering to avoid overstocking. That, in term, has sent suppliers scrambling to adjust to decreased demand and requests for lower pricing as they deal with the ongoing impact of inflation.
Click here to read the article’s start. (Note: Most of it sits behind the paper’s pay wall.)
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Family Legacy, New Chapter: How Wilkerson Turns 89 Years of History Into Future Success
After 89 years of serving the Albany community, Harold Finkle Your Jeweler faced a pivotal decision. For third-generation owner Justin Finkle, the demanding hours of running a small business were taking precious time away from his young family. "After 23 years, I decided this was the time for me," Finkle explains. But closing a business with nearly nine decades of inventory and customer relationships isn't something easily managed alone.
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