Nisa-Today’s has sparked a row with suppliers by trying to delay payments for goods sent to its new national distribution centre.
The group has enraged suppliers by demanding they delay invoices for all September and October deliveries to the new £30m kingsize depot at its Scunthorpe HQ until November.
In a letter to ambient goods suppliers, seen by The Grocer, John Sharpe, MD of central distribution services trading, says the buying group plans to fully stock the new warehouse prior to it opening in October.
It then plans to decant stock from its two existing sites nearby.
He adds: “To this end we need your assistance and would ask
that goods delivered into the new warehouse in September and October are treated as November deliveries for payment purposes. I know that you will agree that Nisa-Today’s continued investment into the independent sector of the market can only bring long-term benefits for suppliers, retailers and consumers alike through maintaining consumer choice and efficient national distribution of your brands.”
Suppliers have reacted angrily, despite Sharpe saying Nisa will continue to take goods into its existing warehouses on “normal payment terms” during the transition.
One said: “We cannot believe the cheek of this.”
Another told us his company had already refused to comply. “It is like we are financing their new distribution centre,” he said.
One own label supplier added: “Everything is negotiable but this is not negotiation, despite the nicely worded letter.”
Neil Turton, Nisa-Today’s MD, group commercial, said: “The warehouse is an unprecedented investment. Suppliers do have a positive view of the investment we have made and any feedback contrary to this is very definitely not typical.”
The row follows a torrid few months for Nisa. The Grocer earlier this year revealed how the group’s chilled and frozen food suppliers had slammed a request to cut the cost of goods by 20p to counter Nisa’s investment in its IT and supply chain (March 26, p6).
And last month we revealed how up to 20 Today’s Group wholesale members were threatening to quit in a row over a proposed hike in membership fees (July 30, p4). The group is also planning to change the trading terms of retailers sourcing from the group.
Simon Mowbray
The group has enraged suppliers by demanding they delay invoices for all September and October deliveries to the new £30m kingsize depot at its Scunthorpe HQ until November.
In a letter to ambient goods suppliers, seen by The Grocer, John Sharpe, MD of central distribution services trading, says the buying group plans to fully stock the new warehouse prior to it opening in October.
It then plans to decant stock from its two existing sites nearby.
He adds: “To this end we need your assistance and would ask
that goods delivered into the new warehouse in September and October are treated as November deliveries for payment purposes. I know that you will agree that Nisa-Today’s continued investment into the independent sector of the market can only bring long-term benefits for suppliers, retailers and consumers alike through maintaining consumer choice and efficient national distribution of your brands.”
Suppliers have reacted angrily, despite Sharpe saying Nisa will continue to take goods into its existing warehouses on “normal payment terms” during the transition.
One said: “We cannot believe the cheek of this.”
Another told us his company had already refused to comply. “It is like we are financing their new distribution centre,” he said.
One own label supplier added: “Everything is negotiable but this is not negotiation, despite the nicely worded letter.”
Neil Turton, Nisa-Today’s MD, group commercial, said: “The warehouse is an unprecedented investment. Suppliers do have a positive view of the investment we have made and any feedback contrary to this is very definitely not typical.”
The row follows a torrid few months for Nisa. The Grocer earlier this year revealed how the group’s chilled and frozen food suppliers had slammed a request to cut the cost of goods by 20p to counter Nisa’s investment in its IT and supply chain (March 26, p6).
And last month we revealed how up to 20 Today’s Group wholesale members were threatening to quit in a row over a proposed hike in membership fees (July 30, p4). The group is also planning to change the trading terms of retailers sourcing from the group.
Simon Mowbray
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