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Morrisons to end at contracts with several suppliers

The retailer Morrisons is planning to end at least 80 maintenance contacts with suppliers.

Morrisons is in cost saving mode as it battles with debt after a takeover in 2021, resulting in the announcement that it will end over 80 contracts with maintenance suppliers, many locally based, in order to gain savings by working with a single provider.

The idea is that the reduced complexity in the supply chain will provide economies in terms of contract costs as well as the companies’ wage bill. Whilst this is inevitably bad news for many local suppliers, Morrisons hopes that it will help give the company an edge in a hugely competitive market where margins are constantly squeezed. In order to keep pace with the competition, the business will need to continue to drive efficiencies wherever possible.

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