Waitrose has confirmed plans to reintroduce charges for suppliers who fail to meet its delivery standards, after delaying the implementation twice, The Grocer has learned.
The supermarket first halted penalty fees during the chaos of the Covid-19 pandemic as a way of helping suppliers, many of whom were battling logistics issues or shortages of key goods. In November 2023, Waitrose first notified suppliers it intended to reintroduce the fees by “mid-April 2024”, as part of a wider review of its delivery processes, which included the implementation of a new charge email notification system, which would need to be tested.
That deadline was pushed back in April after the trial identified some “issues” with the new system.
In an update sent to suppliers this week, Waitrose said it was “now ready to resume non-compliance charges” after “working hard” to resolve issues with the new system.
To enable suppliers to prepare, Waitrose was “extending our grace period until 8 September 2024”. Although suppliers who breached delivery standards would receive email notifications, they would not be charged for any non-compliance until that date. Suppliers have a 30-day window to challenge any compliance breaches, via the Waitrose Connect supplier portal.
“We will communicate again prior to the grace period ending and cost recovery for delivery standards non-compliance resuming,” the email said.
Like all supermarkets, Waitrose sets strict requirements over the size and timing of deliveries, as a way of ensuring safety and the smooth running of its supply chain.
Waitrose’s requirements include ensuring deliveries arrive no later than 30 minutes after the agreed slot, and ensuring all shipments have the correct documentation.
The plan to reintroduce charges has prompted anger from some suppliers, with at least one telling The Grocer they have refused to pay any potential charges.
“If anyone is like us, we’ve told them we don’t intend to pay them,” said the supplier source, who has listings across the major mults. They pointed to Waitrose’s frequent poor spells of availability over the past couple of years as a major “frustration” compared to other supermarkets.
They did not say what Waitrose’s response had been.
The supermarket suffered several spells of product shortages throughout early 2023, some related to IT glitches. However, its availability improved over the past year after investments in new technology in depots, and the implementation of new stocking practices in stores.
Total availability rose to 92% in 2024, from 90.9% the year before, according to the latest annual Grocer 33 results. However that was still the second-lowest among the five supermarkets included, only better than Asda.
“If stock is delivered incorrectly or damaged, at no fault of retailers, it’s normal for supermarkets to recover some of the associated costs,” a Waitrose spokesman told The Grocer.
“This has long been common in retail, but we paused the charges during the pandemic, recognising that it was already a challenging time for suppliers.
“We’re confident that the charges we’re reintroducing are fair and proportionate and we will continue to work with our suppliers to improve overall compliance. We welcome honest and open conversations with any of our suppliers,” he added.
No comments yet