Sharing the Gains
As it approaches its bicentenary, the David Sands retail business is an excellent example of how collaboration in action can bring real commercial benefits to a supply chain and high quality, value for money products to consumers.
Established in 1812, this family firm has gone through two decades of expansion, growing from its original store in Kinross to 25 shops in Fife and Perthshire. The current Chief Executive, David Sands, has been the driving force behind this growth, and his company is now based at a £1.5m warehouse and office complex in Kinross. David Sands now employs 400 staff and there are plans for further expansion.
The company has always endeavoured to support local produce, as well as Scottish produce and products. Over 150,000 people visit the stores each week, reflecting the fact that they lie at the heart of their communities
"We began to look for local suppliers, with a big push on this beginning in 2005. This corresponded with us moving to our new headquarters and a desire to distinguish ourselves from competitors," says David.
David had help from Scottish Enterprise and Scottish Food & Drink to access suppliers through a Meet the Buyer event, as well as undertaking a concerted PR and marketing campaign to build profile for the business and alert producers to the opportunities which the company offers.
A shining example of the philosophy of dealing with local suppliers in practice is the relationship between David Sands and Stephens Bakery, a Dunfermline-based family business which has a pedigree almost as long as Sands - it's been trading for 136 years.
It is certainly a win-win for both parties; after 11 years the relationship now accounts for almost 30 per cent of Stephens' sales and eight per cent of David Sands' turnover.
The in-store bakeries are run by Sands' staff, who are trained by Stephens. The Stephens Director in charge of the in-store bakeries is treated as part of the David Sands' management team and has full authority for the staff, which means that any issues can be dealt with swiftly.
The relationship has certainly proved fruitful for both companies - both have seen increased sales.
Key points from this case study:
- finding a niche market can help distinguish a business from competitors
- a similar pedigree and values can be very important to a collaborative relationship
- both parties must be able to see a clear opportunity for growth
- a willingness to learn from each other is important
- trust and openness are essential to maximising the opportunity
Download the full case study as a PDF
