Aramark demand 12% price cut from suppliers

Contract catering giant Aramark has demanded its suppliers cut prices by 12%, in a letter dated 1 June.

 The letter from chief operating officer Mark Faulkner, said that the company requires some of its suppliers to "make immediate proposals for price reductions on all products or services provided to Aramark, effective 1 July 2011".

Chris Stern of Stern Consultants said that he recognises the need for efficiencies in the current market, but slammed Aramark's tactics. "To simply issue a generic, aggressive letter to suppliers is not the hallmark of the sophisticated organisation we thought Aramark was.

"Whilst focusing on the supply chain is of course critical, they should also review their own performance on a site/micro level. Our experience with most caterers and especially the larger ones is that this is an area where efficiencies are typically available."

Full article:

http://www.caterersearch.com/Articles/2011/06/03/338538/Aramark-demands-12-price-cut-from-suppliers.htm