Partnerships How Covid-19 has strengthened strategic partnerships across the sector
Covid-19 has highlighted the need for collaboration and strategic partnerships. By forming partnerships with one another, businesses from across the consumer-facing sector have been able to continue serving customers effectively.
Suppliers Covid-19 has brought supplier relations to the fore, especially in retail. Since the beginning of the pandemic, we have seen grocers roll out support for their suppliers. Such examples can be found in Sainsbury’s and Morrisons, both of which revisited their supplier payment terms to speed up payment and help save small businesses on the risk of collapse. Supporting homegrown producers rose up the agenda, too, with Aldi promising to stock more British beef and M&S launching a campaign to support and champion British farmers. In FMCG, Unilever pledged €500m to support its supply chain through such moves as extending credit to select small-scale retailers that rely on the company.
Moreover, the intense disruption caused by Covid-19 has fast-tracked conversations about transparency in the supply chain. Now more than ever, businesses must know – and engage with – their supply partners.
This issue is closely aligned to corporate social responsibility, and comes with major PR implications. Primark, for example, pledged to create a fund to pay garment workers’ wages after facing severe criticism from the likes of the Bangladesh Garment Manufacturers and Exporters Association when billions of pounds of clothing orders were cancelled across Asia, leaving millions without work. Brands including H&M, M&S, PVH Corp and Adidas also committed to paying suppliers despite deadstock.
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