Creaming off the profit

31 August 2007

Robert Wiseman Dairies knows that low-cost supplies are not the be all and end all.

As today’s story shows, it has decided to raise the price it pays dairy farmers for milk to reflect a rise in bulk cream prices.

Good relationships with suppliers are one thing, but voluntarily raising the price of milk by 0.71p/litre to 20.22p/litre is tantamount to being best friends.

Buyers know that lowest cost isn’t always the best option, but have we reached a stage where suppliers can expect a share of customer profit in return for good service? How far do you go to strengthen relationships with suppliers?

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