German food wholesale giant Metro Cash & Carry has announced plans to overhaul its current sourcing strategy by establishing a number of central procurement centres and securing direct links to producers.
In a statement, the company said it planned to 'strengthen the position of small food producers' with the planned realignment of its sourcing strategy and thereby 'increase product variety and product quality' for customers.
To that end, Metro Cash & Carry is understood to be preparing a raft of changes to the way it sources so-called 'ultra-fresh produce', including fruit, vegetables, fish and meat.
'These changes will intensify direct cooperation with smaller, local producers and thereby ensure more diverse ranges as well as better quality and prices,' a spokesperson explained.
The Düsseldorf-based group confirmed that it would phase out 'later income' along the fresh produce chain – a reference to costs incurred by paying intermediaries and third-party category managers after annual sourcing programmes have been completed – while at the same time establishing central procurement locations for direct sourcing.
A full report on Metro's direct sourcing plans will appear in the April issue of Eurofruit Magazine.
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