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Supporting a New Supplier Partnership - UK Grocery Retailer

What was the challenge?

A UK supermarket retailer had embarked on a unique supplier partnership for the exclusive supply and development of new private label products. The new relationship offered the opportunitiy to deliver innovation into a mature product category and differentiate the retailer customer proposition. This involved investment in a new manufacturing facility with the creation of over 300 jobs and the launch of over 50 new products within 36 months.  
 
The project was at an impasse and running behind schedule. Construction delays, product development issues and challenges with product launches had eroded trust between the companies. 

How did we help?

Our approach was to integrate with the joint delivery teams and provide support to the private label supplier to address the operational challenges.  
 
We supported both the retailer and the supplier to develop detailed operations plans to complete the product development, line commissioning and launch of the products. We worked with the commercial teams to refresh the partnership business case, clarify the product cost drivers and identify opportunities to reduce the direct product costs. This focus on collaboration helped to deliver changes across the value chain. Finally, we supported the leadership teams to align the partnership strategy to new ways of working, and move from transactional interaction to true collaboration.

What was the impact?

Moorhouse helped to deliver a step change performance improvement in the delivery of the project. The collaboration agreement was brought back on track, securing the significant capital investments made and establishing the foundations to deliver the partnership benefits. We ensured that the change would be embedded through transferring knowledge and building capability in the new private label supplier organisation.

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