During the 9th Drop and Drive claims workgroup meeting, participants detailed their progress thus far, with key retailers taking positive steps towards the implementation of Good Faith Receiving.
Tesco have continued to lead the way in pursuit of process excellence and having completed three workshops, have initiated major process and reporting changes which are currently being implemented. Tesco have sought to address all registered issues and plan to implement a process and systems / reporting improvement plan, investing £500k capital in the project as a direct consequence of our collaboration, and hope to have the majority of changes implemented by November 2016. Once implemented, Tesco will represent the industry benchmark for effective receipting and claims processing.
The first workshop of in March 2015 revealed a conspicuous absence of a claims dispute process and significant receipting process weaknesses. With director-level sponsorship, ASDA have now confirmed a three month Good Faith Receiving trial for four suppliers, in March 2016 across all ASDA chilled distribution centres. Additionally ASDA will propose a small claims dispute process for review with its subsequent introduction anticipated in Spring 2016.
An initial Good Faith Receiving Trial has been successfully completed with 14 suppliers, and has now been extended to ‘Pilot’ status. Good Faith Receiving is now being rolled out, representing a big win for suppliers, who have seen deductions reduced by 70-90%, and are no longer required to cover the costs of the retailer audits.
It has been agreed that the first workshop will be held in March with seven suppliers already selected. Andrew Perry (Logistics Director) is sponsoring the workshop, aimed at identifying the causes of error and process weakness within the end to end chain, which cause the current level of unsubstantiated claims. Good Faith Receiving has already been mentioned as a possible solution and we look forward to confirming the next steps by the end of March.
The progress achieved via the retailer workshops has surpassed our initial expectations and we are well on track to deliver a significant reduction in payment deductions for workgroup participants by the end of 2016. Further workshops with Co-op and Morrisons are anticipated to deliver similar levels of progress and we look forward to detailing the next steps as they materialise.
The next Drop and Drive Claims Workgroup group review will be held on 19th April 2016.