Managing your relationships with suppliers can be tough. So what does it take to be a great buyer? Rod Addy offers some pointers
The strength of the relationship between buyer and seller is still one of the cornerstones of the grocery industry. Given the competitive state of the market, it is, perhaps, not too surprising that we tend to hear only about what happens when those relationships turns sour. That’s why we launched our monthly Six of the Best feature last year. We recognised that, despite the bad headlines, there were plenty of buyers out there who were admired and respected by the suppliers with whom they dealt. And over the past year, hundreds of suppliers have helped us put together our Six of the Best features, which have looked at those buyers rated the best in 12 grocery categories ranging from dairy to health.
Here, we pull together the results of those surveys for the first time to reveal which retailers are on top of the buying game and, more important, to find out what suppliers think makes a really great buyer.
One thing we should stress from the outset is that being a ‘soft touch’ was not an attribute mentioned by any of the suppliers who took part in our surveys over the past 12 months. Instead, suppliers were more impressed by straight-talking negotiators - so long as these buyers are not confrontational, deal with them fairly and, most important of all, deliver on their side of any agreed deal.
That explains why our monthly features are peppered with phrases such as “ferocious but direct and honest” and “hard-nosed” - or even more colourful language such as “pragmatic with no bullshit!” But they are used positively by suppliers to describe their customers.
What this all adds up to is a recognition that the best buyers with which to do business are those who - as the jargon has it - find win:win solutions. Nobody says this is easy, particularly in the current deflationary trading climate, but it is this ability to work in collaboration with suppliers that tops our list of what it takes to be a great buyer. And, yes, that does sometimes mean there needs to be some realism (on both sides) about what is achievable when it comes to price.
In a similar vein, suppliers enjoy dealing with proactive buyers who are committed to driving overall category growth. That means working with retailers who understand totally the needs of their shoppers and, as a result, can see the bigger picture when it comes to supporting supplier initiatives.
On this point, experience as a buyer, and detailed knowledge of the particular category, can both play an important role in cementing good relationships with suppliers.
All of which leads us nicely to one of the most common gripes among suppliers, namely that buyers switch categories far too often. When we surveyed the frozen food category, for instance, the high turnover of buyers was identified as a major concern. But in our research it was also clear that suppliers don’t grumble when the buyer understands their category and has a clear sense of where it is heading - no matter how little time they have spent in their role.
Frozen food aside, the exception to that rule came in the drinks categories we surveyed, where experience and knowledge were seen as being vital and buyers were praised for their “encyclopedic knowledge” and “passion” for the products they bought.
So what other attributes do those on our wall of fame have in common?
Last, but definitely not least, is the ability to communicate with suppliers. For starters, the buyers on our list are good at returning telephone calls and don’t ignore e-mails. But good communication is about more than mere good manners, say suppliers. They also rate highly the buyers who are accessible, communicate clearly during meetings - “using ears and mouths in correct proportion” as one manufacturer put it - and provide feedback, ideas and advice.
A final question: where can our top buyers be found? Well, in the course of our research we found examples of excellence in every part of the grocery industry.
As well as the biggest supermarkets, our nominated buyers came from Batleys, Booker, Booths, Budgens, the Co-operative Group, Dhamecha, Fortnum & Mason, House of Fraser, Iceland, Jacksons, Makro, Majestic Wine Warehouses, Woodward Foodservice, Nisa-Today’s and Somerfield.
One buyer deserving special mention was Trevor Standing, buying controller for Nisachill at Nisa-Today’s, who was the only one to be named in two categories
If we were drawing up a league table, then Sainsbury would just pip Tesco to the top spot with 11 buyers nominated overall versus Tesco’s 10 (although Tesco had buyers nominated in the most categories). Asda and Morrisons were not far behind the top two, with eight buyers each. Waitrose came in fourth with seven buyers and Safeway nailed fifth place with four buyers in the spotlight.
Managing relationships with suppliers is never going to be the easiest job. But as our Six of the Best features have demonstrated, when buyers get it right, their suppliers really do notice. To date, we have only looked at 12 categories in our monthly Six of the Best features. But this is just the beginning. We plan to run more surveys in 2004 because we know there are plenty more buyers out there who are on top of their game.
What it takes to be a great buyer
>>Suppliers define the attributes that impress them most 1 A willingness to collaborate
Typical comment: “Waitrose’s Jocelyn Clarke is always willing to share information that helps position products and maximises the suitability of our offering.”
2 An open, fair and realistic approach
Typical comment: “Linda Whitaker is a typical Morrisons buyer - no fuss, she just gets on with it. She makes a decision and stands by it and is a tenacious negotiator.”
3 A strong focus on category growth
Typical comment: “Tesco’s Nick Orledge is a buyer who has a clear strategy for his own business and the total UK biscuit market.”
4 Knowledge and experience
Typical comment: “Deana Laidlaw’s 10-year experience has successfully driven a proactive approach to developing the sector at Iceland.”
5 Excellent communication skills
Typical comment: “We find Asda’s Robert Wilks easy to get hold of and talk to. He has very good negotiating skills and keeps his promises.”
The strength of the relationship between buyer and seller is still one of the cornerstones of the grocery industry. Given the competitive state of the market, it is, perhaps, not too surprising that we tend to hear only about what happens when those relationships turns sour. That’s why we launched our monthly Six of the Best feature last year. We recognised that, despite the bad headlines, there were plenty of buyers out there who were admired and respected by the suppliers with whom they dealt. And over the past year, hundreds of suppliers have helped us put together our Six of the Best features, which have looked at those buyers rated the best in 12 grocery categories ranging from dairy to health.
Here, we pull together the results of those surveys for the first time to reveal which retailers are on top of the buying game and, more important, to find out what suppliers think makes a really great buyer.
One thing we should stress from the outset is that being a ‘soft touch’ was not an attribute mentioned by any of the suppliers who took part in our surveys over the past 12 months. Instead, suppliers were more impressed by straight-talking negotiators - so long as these buyers are not confrontational, deal with them fairly and, most important of all, deliver on their side of any agreed deal.
That explains why our monthly features are peppered with phrases such as “ferocious but direct and honest” and “hard-nosed” - or even more colourful language such as “pragmatic with no bullshit!” But they are used positively by suppliers to describe their customers.
What this all adds up to is a recognition that the best buyers with which to do business are those who - as the jargon has it - find win:win solutions. Nobody says this is easy, particularly in the current deflationary trading climate, but it is this ability to work in collaboration with suppliers that tops our list of what it takes to be a great buyer. And, yes, that does sometimes mean there needs to be some realism (on both sides) about what is achievable when it comes to price.
In a similar vein, suppliers enjoy dealing with proactive buyers who are committed to driving overall category growth. That means working with retailers who understand totally the needs of their shoppers and, as a result, can see the bigger picture when it comes to supporting supplier initiatives.
On this point, experience as a buyer, and detailed knowledge of the particular category, can both play an important role in cementing good relationships with suppliers.
All of which leads us nicely to one of the most common gripes among suppliers, namely that buyers switch categories far too often. When we surveyed the frozen food category, for instance, the high turnover of buyers was identified as a major concern. But in our research it was also clear that suppliers don’t grumble when the buyer understands their category and has a clear sense of where it is heading - no matter how little time they have spent in their role.
Frozen food aside, the exception to that rule came in the drinks categories we surveyed, where experience and knowledge were seen as being vital and buyers were praised for their “encyclopedic knowledge” and “passion” for the products they bought.
So what other attributes do those on our wall of fame have in common?
Last, but definitely not least, is the ability to communicate with suppliers. For starters, the buyers on our list are good at returning telephone calls and don’t ignore e-mails. But good communication is about more than mere good manners, say suppliers. They also rate highly the buyers who are accessible, communicate clearly during meetings - “using ears and mouths in correct proportion” as one manufacturer put it - and provide feedback, ideas and advice.
A final question: where can our top buyers be found? Well, in the course of our research we found examples of excellence in every part of the grocery industry.
As well as the biggest supermarkets, our nominated buyers came from Batleys, Booker, Booths, Budgens, the Co-operative Group, Dhamecha, Fortnum & Mason, House of Fraser, Iceland, Jacksons, Makro, Majestic Wine Warehouses, Woodward Foodservice, Nisa-Today’s and Somerfield.
One buyer deserving special mention was Trevor Standing, buying controller for Nisachill at Nisa-Today’s, who was the only one to be named in two categories
If we were drawing up a league table, then Sainsbury would just pip Tesco to the top spot with 11 buyers nominated overall versus Tesco’s 10 (although Tesco had buyers nominated in the most categories). Asda and Morrisons were not far behind the top two, with eight buyers each. Waitrose came in fourth with seven buyers and Safeway nailed fifth place with four buyers in the spotlight.
Managing relationships with suppliers is never going to be the easiest job. But as our Six of the Best features have demonstrated, when buyers get it right, their suppliers really do notice. To date, we have only looked at 12 categories in our monthly Six of the Best features. But this is just the beginning. We plan to run more surveys in 2004 because we know there are plenty more buyers out there who are on top of their game.
What it takes to be a great buyer
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