The Midcounties Co-operative’s travel division is reviewing its list of preferred suppliers to develop closer ties with top suppliers.
The group is to benchmark suppliers to its retail shops, homeworkers and consortium members against set criteria, including payment terms. Suppliers will need to meet the criteria to remain a preferred supplier.
Speaking at The PTA 2014 conference in Spain, Julie Kendrick (pictured), head of commercial and marketing for the society’s travel division, said the group’s homeworkers sold 206 suppliers between December 10, 2013, and June 30, 2014. However, 98.1% of gross margin came from 100 of these suppliers.
“We are now having to look at who we work with and who we sell. We are going through the list with a fine toothcomb as part of a benchmarking process and setting criteria, which will completed before Christmas,” she said.
As a result, the list of preferred suppliers is likely to reduce, admitted Kendrick. “I see the list coming down; when we do the benchmarking it will happen naturally.”
Kendrick said the move was to ensure the group develops stronger partnerships with key suppliers.
Currently agents book some holidays at low margin with “little reward” from a supplier despite the time and effort involved in the booking. “We are looking for partners,” she said, but stressed agents would not be prevented from working with other niche operators.