Asda, the UK subsidiary of US retail giant Wal-Mart, is requesting that suppliers give it access to their accounting books.
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Seven of Asda’s largest produce suppliers have already agreed to such an ‘open book’ partnership. According to the Sunday Times, the agreement allows the retailer to view exactly what profit margins the supplier makes on the products it supplies.
One supplier is quoted as saying that the retailer has been putting pressure on suppliers to agree to open-book accounting. He expressed concern that Asda will start telling their suppliers where to strip out costs.
The CEO of Thames Fruits, which supplies all of Asda’s citrus fruits, said the company had been nervous when it signed up to the new initiative.
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