In 2017 the Trading Partner Forum, consisting senior executives from major Australian food and grocery retailers and suppliers, identified the opportunity to work together to deliver a standard approach to deliveries into retail distribution centres (DC). The focus was on physical flows of goods from the supplier into retail DCs.
The development of a Common Despatch Checklist Toolkit comprises a suite of simple to understand and use tools to support suppliers and their 3PL organisations to ensure that deliveries to retailers have the best chance of being quickly and easily receipted without issue.
The tools are primarily targeted for use by suppliers to the major retailers, and are consistent across Coles, Metcash or Woolworths.
Pallet Despatch Checklist Poster
The poster is intended to be displayed in despatching at a DC as a visual reference, and highlights issues that can be visually checked prior to despatch.
One Page Reference Guide
This is intended as a simple reference guide to support despatch staff in understating the most basic requirements associated with pallet quality, utilisation and wrapping, carton integrity and labelling.
Pre-Despatch Checklist Tool
This is an operational document which despatch staff at suppliers or 3PL DCs can utilise prior to despatching goods. It is simple to use and reminds staff of the basic issues to check prior to despatch.
A forum of the Australian Food and Grocery Council (AFGC), the TPF is a joint supplier and retailer body representing the Australasian FMCG/retail industry whose mission is to bring together FMCG suppliers and supermarket retailers in pursuit of business practices that contribute to driving growth, delivering efficiency and improving availability across the end-to-end value chain, benefiting suppliers, retailers and shoppers, without impeding competition law.
The Toolkit is free and can be accessed on the TPF website.
The food and grocery sector is 30 per cent more valuable to Australian manufacturing than it was 10 years ago, according to new research by consulting firm EY.
This is largely a result of Asia’s growing middle class and the demand for Australia’s produce, according to the research. The sector has been aided in recent years by Australia’s strong export ties, particularly the 2015 China-Australia free trade agreement.
Australia’s reputation for producing clean and green products is also key in the sector’s growth, according to EY agribusiness partner Andrew Metcalfe.
“While domestic conditions remain challenging, food and grocery processing is an area of strong export growth with an 11 per cent surge in food and beverage exports to $26b last year,” Australian Food and Grocery Council chief executive Tanya Barden told The Australian.
“The results show a huge potential for huge growth.”
The food and grocery manufacturing sector is currently worth $126 billion, and employs over 300,000 Australians. Its growth over the past year was almost three times higher than that of the next-largest manufacturing sector, machinery and equipment and fabricated metal.
The Australian Competition and Consumer Commission has reassured the Australian Food and Grocery Council (AFGC) that it will do what it can to ensure the Council’s Code of Conduct succeeds.
At an industry forum held in Canberra, ACCC Chairman Rod Sims said that the Code can redress the imbalance in bargaining power existing between suppliers and large grocery suppliers.
According to Mr Sims, “Ensuring suppliers are aware of their rights is crucial to the success of the Code. Our public action was designed to help with this.”
Plans to increase focus on the agricultural sector were also outlined, with further discussions to be held concerning the proposed changes to the country of origin labelling regime and the role of regulators.
As Wesfarmers and Woolworths continue to battle for leadership across different retail categories in Australia, Julia Illera from Euromonitor International assesses how successful they’ve been in their attempts to gain market share – as well as the hearts and minds of Australian consumers.
“Although competition has been almost head-to-head in most of retail categories in recent years, including grocery retailing (supermarket, forecourt retailing, food/drink/tobacco specialist) and mass merchandisers (discount department stores), Wesfarmers has managed to step ahead in the competition thanks to its position in mass merchandisers and home improvement and gardening stores with its Kmart, Target and Bunnings brands,” said Ms Illera.
“Furthermore,” she noted, “Wesfarmers also has a strong presence in stationers/office supply stores with the Officeworks brand, a category in which Woolworths Ltd does not have a presence”
“Despite Woolworths’ poor FY15 results, out of these two competitors Woolworths seems to have a better strategy for the long term, with its online channel better prioritised and experiencing stronger growth. For FY14, the group reported a 50% increase in its online sales, exceeding $AUD1.2 billion. In FY15, it reported a 15.6% increase in online sales to $AUD1.42 billion.”
“Up until now the battle has been limited to the physical world, but it seems we will soon see the fight move increasingly online,” Illera concluded.