Suppliers feel good about global relationships, says IGD

International retailers are pushing for suppliers to operate with them on a global basis and an increasing number of suppliers are keen to develop global trading relationships with the major international retailers.

Global trading relationships continues to be one of the hottest and most sensitive topics in the international grocery industry. A new report from food and grocery think tank IGD reveals that leading retailers and suppliers are more positive about the relationship than ever before. The report includes a survey of 50 managers from FMCG (Fast Moving Consumable Goods) suppliers, including Unilever, P&G, and Colgate-Palmolive. 72% are positive about their returns from entering into global trading relationships, up from just 21% in 2003 and 54 % last year.

The results also indicate that 41% of suppliers, up from 13% last year, now have global or regional pricing included in their negotiations.

"This year we have seen a real change in attitudes towards global trading relationships," said Joanne Denney-Finch, chief executive of IGD. "Many suppliers are now positively embracing what was avoided before.

"Global Trading Relationships is a new IGD report that provides suppliers with practical insight, benchmarking tools and a better understanding of the challenges and opportunities retailers face in trading with global suppliers. With practical tips and benchmarking scorecards the report ensures suppliers are perfectly positioned to assess whether and how to implement global trading relationships.

"On a critical issue, IGD has used its unique position to understand from the retailers' perspective, what they look for in a relationship and what issues frustrate them," continued Joanne Denney-Finch. "It is clear that they are looking to work with pro-active global suppliers that develop and share their best practice in all the markets in which they operate."

Also included in the report is a ground-breaking case study assessing how Carrefour and Colgate-Palmolive radically improved the process of new product launches.