Our mission is to Develop, Enhance and Maintain Profitability and Equity for every Pepperidge Farm Owner
POAA Gives Meaning to the Motto: "In Business For Yourself, Not By Yourself."
SINGLE SOURCE MANDATE?
Today is the last day of arguably the most influential technology event in the world - the annual Consumer Technology Association’s Consumer Electronics Show (CES). CES is the proving ground for thousands of consumer electronics manufacturers to showcase hardware innovations and compete for awards in a variety of different technology categories. The ultimate annual prize is a place on the prestigious CES timeline of the most innovative technology milestones since 1967. In 2010, the CES best technology innovation milestone was awarded to the Tablets, Netbooks and Android Devices category. That was eleven years ago, and nearly every owner has already purchased at least one Apple IOS-based iPad or Samsung Android-based mobile device for personal and business use over the last decade. One likely reason the Campbell Snacks Mobile Transformation Initiative (MTI) is still such a mystery is that it requires owners to procure new tablets only from CPB’s designated single source.
A buying organization sometimes selects a single source supplier even when multiple suppliers are readily-available because a strategic relationship with the single source can provide steep pricing discounts, rebates and/or some other value to big buyers like CPB - but CPB is not the buyer for its MTI. DSD owners are the buyers, and the new consumer electronics equipment required by the MTI is readily available from countless sources. The designated single source may be an affordable option for some owners, but CPB’s single source mandate threatens to set a dangerous precedent that should deeply concern every DSD owner. There is not a single provision in any version of the existing consignment contracts that authorizes PF or its parent company to mandate that DSD owners buy any equipment from PF, CPB or only their designated strategic partners.
Sadly, CPB and PF executives still have not published any meaningful details about the new MTI mandate, and the simple question remains: Why is the MTI corporate mandate still such a mystery?
TeamPOAA will offer some additional answers in next week’s newsletter, but we want to hear from you in the meantime.
TIP OF THE WEEK
POAA is receiving reports from owners all over the country that PF is expanding the number of Consigned Products authorized for sale "club stores", so examine your settlement statements carefully.
The opinions and beliefs expressed in this newsletter are intended only to spark discussions about serious and ongoing business issues that impact every owner in PF’s distribution network. If you need or want legal advice, you must consult with your attorney.
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