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Suppliers' dilemma: Producing brands or private label
date:Jun 29, 2012
id, whereas for private label supply it is about contract wins, production flexibility and customer relationships.

For brand suppliers there is openness with retailers about price setting, marketing and new product development (NPD) plans and for private label suppliers cost structures are very transparent, it detailed.

However, the knowledge of all of this combined can enforce the negotiation power of the customer (food retailer) and weaken the suppliers bargaining position, the report said.

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