The food buyer needs to be aware that suppliers will also be assessing the true cost and therefore profitability, of doing business with is customers for a specified product or service. In addition to the direct costs of production, all other costs incurred in winning and retaining the business are calculated and aggregated.
This idea of how attractive the customer is to the supplier against the relative value of customer is called Supplier Preferencing. Further information is provided in the attachment.
Developing local supply chains opens up opportunities for small Welsh producers.