Sir; re Supplying the big guys: go for it' (The Grocer, March 31, p24).
I agree entirely with the sentiment of O'Kane's letter last week encouraging small suppliers to deal with the large UK supermarket groups and focus on the benefits their products bring to the retailer.
In doing so they must, however, go in with their eyes wide open.
They must be aware that if they produce a retailer own label and are assured that they will receive three months' notice of a delisted line so they will not incur waste packaging this promise is, like the packaging a load of worthless rubbish!
They must be aware that if they have agreed payment terms they must still have a friendly bank manager and understanding suppliers as, for a variety of imaginative reasons, money can dry up.
The latest example was Safeway last week blithely telling us that they "had no funds for payments" as it was their year-end.
However it is not all bad news! Anyone considering supplying Morrisons can look forward to an honourable, straightforward business relationship. They are no "soft touch", but I have found them "hard but fair", a culture permeating down from Ken Morrison himself. They demonstrated by taking a stand at IFE that they are serious about dealing with smaller suppliers go for it!"
SME sales director
Kevin Hawkins, Safeway Director of Communications responds: There was a commincation issue between our head office and the financial services company who now handle suppliers' invoices on our behalf.
This has now been resolved and your correspondent's account will have been settled.
{{LETTERS }}
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