Asda reduces number of corrugated packaging suppliers for its private label brand from 88 companies to 13; Sheet Plant Association raises concerns over delisted members, asks Asda to reconsider

LOS ANGELES , July 15, 2011 () – Asda Stores Ltd. has reduced its private-label corrugated packaging suppliers from 88 companies to 13, prompting Scotland-based Sheet Plant Association to ask the U.K. supermarket chain to reconsider and allow the suppliers to come up with cost cuts before being nixed from the supply chain, Packaging News reported on July 13.

Asda cut the private-label packaging suppliers after a six-month re-evaluation, saying it would help improve its packaging’s quality and decrease costs for itself and customers.

Asda head of packaging Shane Monkman said it wanted to support suppliers that invested in better standards and processes and found that almost 60% of its suppliers were not being accredited through the British Retail Consortium.

He also added that the company felt it could improve its supply chain as 30% of suppliers were providing boxes as merchants, not actually producing the corrugated packaging.

SPA issued a statement that called the move “worrying” and is looking into ways to help delisted members.

The primary source of this article is Packaging News, London, England, July 13, 2011.

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