Every large company is trying to cut costs, large chains are looking for ways to make their operations more efficient and cut labor costs. Big grocery store retailers have quite a bit of labor, often it is unionized, and thus, it is even more imperative to keep the hours down. One strategy that has been employed is the use of vendors stocking their own products on the shelves, this is common with bread companies, dairy vendors, soda pop and other items, but it is not the case with all the items in the store.
Many believe that it would be impossible to have all the vendors who sold products with their employees in the store, there’d be so many people that no one could get down the aisle, especially mom’s who have kids driving those little plastic carts on the front of the shopping carts, as they turn about as sharp as a battleship or the Valdez Super Tanker that ran aground.
Still, there are some suppliers that sell many brands, and are large scale distributors for the grocers, and if the stores in the large cities are plentiful enough, the grocery store chain could demand that if they want those products in the store they have to have employees from their companies stock the shelves. This may not be apropos in every situation, but better use of this strategy could shave off costs of unionized employees from these large chains. Let’s face it every time we can save a little bit of cost in labor we are well ahead to hitting our quarterly objectives, so please consider this.