Drop and Drive Claims Workgroup - Developing a sustainable alternative
Aims and objectives:
- We represent over 20 suppliers selling circa £5bn p.a. of chilled goods to UK consumers
- Collectively our suppliers deliver appx.1bn cases to the Top 10 retailers
- The current Drop and Drive process affects all chilled suppliers by deducting payments for unsubstantiated claims of ‘undelivered’ product – valued at £15m for the group in Nov 2014, our actions have already reduced this to circa £10m p.a. for 2016
- We will continue the campaign, with the full support of the GCA, to change the current process to a more sustainable, equitable and cost-effective one for both retailer and supplier
Results to date
- Deducted claims have dropped 33% from 39 per 10,000 cases in 2014 to 26 per 10,000 cases by the end of 2016
- Major retailers are engaged in supplier workshops to address the issues:
- Tesco have revised their receiving processes and systems to reduce unsubstantiated claims. They have recently launched a new ePOD and we are working with them to extend this functionality to provide full transparency of claims later this year.
- Sainsbury's have piloted and are now rolling out Good Faith Receiving (GFR) across its chilled suppliers and some ambient suppliers throughout 2017/18
- Morrisons have developed and now implemented GFR, following a successful trial in 2016, for all of its chilled suppliers who meet the programme criteria.
- ASDA have implemented a Claims Dispute process for <1 pallet claims and are running a GFR pilot, having already confirmed sample supplier accuracy levels at 99.97%, during the trial in 2017
- M&S are developing their systems and processes to address the issue and having reviewed their claims process, are resolving disputed claims within 7 days
- Co-op are engaged and we are working towards an alternative solution by mid 2017
2017 will see the benefits from these initiatives, and more, being realised for ALL members and has already enabled many members to build and benefit from stronger relationships with their key customers, as a result of the contacts made.
Membership is by invitation only and is strictly for chilled suppliers to the Grocery retailers.
A member contribution helps fund the facilitation, best-practice development and collaboration workshops led by Simply Supply Chain, for the benefit of all suppliers, in the pursuit of developing a sustainable alternative tha enables suppliers and retailers to focus on improving availability in-store and reducing supply chain waste.
Download Our Membership Details Now
For the full information on our membership programme download our Membership Plan for 2017 by filling the form below, or if you would like to attend our next Workgroup Quarterly Review on 27th April 2017, at Culina Lutterworth, with presentations from Tesco, ASDA and the GCA, please contact us for further information.