German retail giant Metro Group has insisted that a new sourcing strategy will “strengthen” smaller food manufacturers.

From 2012, the wholesale operator will change the way it buys fresh produce, such as fruit, vegetables, fish and meat.

Metro said that it would phase out the so-called “later income” – whereby the income on the originally agreed purchase price is calculated at the end of the year – for ultra-fresh produce.

The company – the world’s fourth-largest retailer – also plans to establish central procurement locations for direct sourcing. Metro will begin buying products directly from suppliers through five central buying offices in a variety of locations “from South America to Oceania”.

Metro insisted that the moves would benefit smaller suppliers as they would gain “added security and forward planning”. “The measures will tighten our relationship with local suppliers, better serve our customers with a wider product assortment and reduce costs,” a spokesperson for the company said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.