Premier Foods ‘ahead’ on scrapping suppliers
Premier Foods’ ceo Gavin Darby claimed the firm was ahead of target on cutting suppliers and product lines, reporting on third quarter financial results earlier this month.
“During the quarter we made good progress in pruning the number of lower margin products (SKUs) in the grocery business by over 270, representing a reduction of more than 15% since the beginning of the year,” the firm said in a statement.
“In addition, the company is tracking ahead of its plan to halve the number of suppliers by the end of 2014 with 83% of total procurement expenditure now with just 250 lead suppliers.”
Darby added that progress had been made on extracting better terms from suppliers, claiming this could deliver benefits of £10–20M for the business.
“We will continue to drive down the number of our suppliers,” he said in an analysts call based on the results.