On October 8, 2009
Amazon, Waitrose: Principles vs Profits?
Two stories, very different, but demonstrating what happens to the supply chain when a large customer in the B2B food-chain gets fed up. Cutting ties with a supplier on point of principle has an impact on the wider community and could draw some unintended fire from critics. First and most recent is the report that Amazon has terminated its long-term contract with the Royal Mail. The contract, apparently worth some £25m, was pulled when Amazon learned that Royal Mail’s strike action might harm Christmas deliveries. According to one Mail worker, the strike would secure Royal Mail’s future. But losing one of its ‘keystone’ customers would seem more likely to guarantee its downfall. Other retailers, already concerned about how the recession…
0 Comments