United we stand

2 May 2007
With suppliers pressurised to deliver even greater cost savings to buyers, it's not surprising that some think that mergers and acquisitions on the supply side are an effective way of wrestling some control back from purchasers.But are there occasions when procurement might benefit from these M&As? When Premier foods took over RHM last December, one of their goals was to become the lowest cost supplier and provide buyers with greater efficiencies. A bigger supplier might make you more comfortable in terms of price, volumes and supply security, but does this mean that the innovation and quality that only some small suppliers can provide is lost?
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