Following recent revelations, supermarkets are once again in the spotlight.

While we generally think of them as our friendly neighbourhood go-to for groceries, it seems they might not play as nice when it comes to their dealings with suppliers.

Grocery giants have allegedly been involved in giving their suppliers quite the short end of the stick. As per a recent report, various suppliers have suffered 'unauthorised deductions' from their payments.

Complaints were made to the government’s independent reviewer of a voluntary code of conduct. This governs the relationship between the food and grocery manufacturing sector.

It was revealed that these supplier rip-offs are an industry-wide problem.

Woolworths was quick to spring into action, promising it would investigate these concerning allegations.

Woolworths responded to the ‘unauthorised deductions issue’. Credit: ArliftAtoz2205/Shutterstock

'We will fix it,' claimed Woolworths CEO Brad Banducci.

According to the report, all major supermarket chains have been involved in this issue. However, ALDI, Coles and Metcash (behind IGA) haven’t responded to these allegations.

Under the law, suppliers and other small businesses are accorded certain protections.

‘It is illegal for a business to behave in a way that misleads or deceives, or is likely to mislead or deceive, consumers or other businesses,’ according to the Australian Consumer and Competition Commission (ACCC). This includes cases where there was no intent on a business’s part to trick anyone, or no loss or damage was incurred by a certain party.

The ACCC also warns businesses against ‘unconscionable conduct’ with customers or other businesses.

Often overlooked, the relationship between supermarkets and their suppliers is a delicate and complex ecosystem likened to a finely tuned orchestra with every instrument playing a synchronous part. Predominantly, those off the supermarket floor perceive only the crescendo—the finished product on the shelves. The many moving parts involved in creating that product, specifically the relationship between retailer and producer, are left unseen.

The symbiotic relationship between supermarkets and their suppliers can also be viewed through the give-and-take dynamics, which foster efficiency and productivity. The supermarkets, in this context, are figuratively seen as the market gatekeepers. They order, store, and subsequently make products available to consumers. In return, suppliers are expected to consistently deliver superior quality goods that meet their stringent quality guidelines and the consumer's expectation of value for money.

However, allegations of unauthorised deductions from supplier invoices strike a dissonant chord in this seemingly harmonious relationship. Many suppliers feed into the big supermarket chains expecting fair treatment and timely payments. But if the orchestra is not playing in tune, it can cause distressing ripple effects.

Consider the humble farmer supplying tonnes of fresh produce to the city supermarkets. An unexpected deduction from an already tight margin invoice can have a significant impact on their livelihood and business viability. At the same time, it questions the integrity of the supermarkets' business practices.

Key Takeaways

• A news outlet reports that ‘unauthorised deductions’ were made to supermarket giants suppliers.
  
• Woolworths has vowed to investigate complaints from its suppliers after concerns were raised to the independent reviewer of the supermarket chain's voluntary code of conduct.
  
• Other retailers like Coles, ALDI and Metcash (behind IGA) have not responded to the allegations yet.
  
• Suppliers and other small businesses are also protected by the law.
  
• The relationship between supermarkets is a complex and fragile one, and issues like ‘unauthorised deductions’ serve to disrupt the balance between the two. This puts everyday consumers at risk.
  

The current situation provides a stark reminder that maintaining a balanced and transparent relationship between supermarkets and suppliers is not only crucial for a healthy supply chain, but it plays an intrinsic role in good corporate governance and establishing consumer trust. After all, the relationship is inexorably intertwined—one cannot exist in harmony without the other playing its part.

So, as the saying goes, it's important to ensure all the orchestra's players are getting their fair share of applause... or, in this case, fair payments for produce supplied!

What do you think of this story, members? Share your thoughts in the comments below!

 

[GranniCaz]

Following recent revelations, supermarkets are once again in the spotlight.

While we generally think of them as our friendly neighbourhood go-to for groceries, it seems they might not play as nice when it comes to their dealings with suppliers.

Grocery giants have allegedly been involved in giving their suppliers quite the short end of the stick. As per a recent report, various suppliers have suffered 'unauthorised deductions' from their payments.

Complaints were made to the government’s independent reviewer of a voluntary code of conduct. This governs the relationship between the food and grocery manufacturing sector.

It was revealed that these supplier rip-offs are an industry-wide problem.

Woolworths was quick to spring into action, promising it would investigate these concerning allegations.

View attachment 28452

Woolworths responded to the ‘unauthorised deductions issue’. Credit: ArliftAtoz2205/Shutterstock

'We will fix it,' claimed Woolworths CEO Brad Banducci.

According to the report, all major supermarket chains have been involved in this issue. However, ALDI, Coles and Metcash (behind IGA) haven’t responded to these allegations.

Under the law, suppliers and other small businesses are accorded certain protections.

‘It is illegal for a business to behave in a way that misleads or deceives, or is likely to mislead or deceive, consumers or other businesses,’ according to the Australian Consumer and Competition Commission (ACCC). This includes cases where there was no intent on a business’s part to trick anyone, or no loss or damage was incurred by a certain party.

The ACCC also warns businesses against ‘unconscionable conduct’ with customers or other businesses.

Often overlooked, the relationship between supermarkets and their suppliers is a delicate and complex ecosystem likened to a finely tuned orchestra with every instrument playing a synchronous part. Predominantly, those off the supermarket floor perceive only the crescendo—the finished product on the shelves. The many moving parts involved in creating that product, specifically the relationship between retailer and producer, are left unseen.

The symbiotic relationship between supermarkets and their suppliers can also be viewed through the give-and-take dynamics, which foster efficiency and productivity. The supermarkets, in this context, are figuratively seen as the market gatekeepers. They order, store, and subsequently make products available to consumers. In return, suppliers are expected to consistently deliver superior quality goods that meet their stringent quality guidelines and the consumer's expectation of value for money.

However, allegations of unauthorised deductions from supplier invoices strike a dissonant chord in this seemingly harmonious relationship. Many suppliers feed into the big supermarket chains expecting fair treatment and timely payments. But if the orchestra is not playing in tune, it can cause distressing ripple effects.

Consider the humble farmer supplying tonnes of fresh produce to the city supermarkets. An unexpected deduction from an already tight margin invoice can have a significant impact on their livelihood and business viability. At the same time, it questions the integrity of the supermarkets' business practices.

Key Takeaways

• A news outlet reports that ‘unauthorised deductions’ were made to supermarket giants suppliers.
• Woolworths has vowed to investigate complaints from its suppliers after concerns were raised to the independent reviewer of the supermarket chain's voluntary code of conduct.
• Other retailers like Coles, ALDI and Metcash (behind IGA) have not responded to the allegations yet.
• Suppliers and other small businesses are also protected by the law.
• The relationship between supermarkets is a complex and fragile one, and issues like ‘unauthorised deductions’ serve to disrupt the balance between the two. This puts everyday consumers at risk.

The current situation provides a stark reminder that maintaining a balanced and transparent relationship between supermarkets and suppliers is not only crucial for a healthy supply chain, but it plays an intrinsic role in good corporate governance and establishing consumer trust. After all, the relationship is inexorably intertwined—one cannot exist in harmony without the other playing its part.

So, as the saying goes, it's important to ensure all the orchestra's players are getting their fair share of applause... or, in this case, fair payments for produce supplied!

What do you think of this story, members? Share your thoughts in the comments below!

It is beyond “time” the sleepy watchdog ACCC ceased warning the corporates, and implemented charges for the actions of gouging suppliers and negating contracts based on technicalities, often rendering any *profits for suppliers in jeopardy ( *especially those in the precarious business of farming )

 

[mylittletibbies]

It's been going on for years. It is over 30 years since I closed my business, but even back in those days it was the same
The bigger the business the worse they are. All my customers were on 30 day accounts, but the likes of Myers, Harris Scarfe, etc would usually take 90-120 days to pay, the bigger the company the more they owe. Small business is left struggling to cover costs, pay their own suppliers, pay wages etc .
Worse still when some of those companies go into liquidation the suppliers are the last to be paid, their stock is auctioned by the liquidators, but taxation, workers etc are all paid first and the poor supplier usually ends up with nothing.
Such is the life if small business in Australia

 

[Phantom55]

the large retailers are actually predators of smaller business ...they bully them into less margins and longer payment times and then short change them by reducing their bill by "penalties"for petty offences like labels not facing front when carton opened and similar 'offences' resulting in 'fines'...general 'bully' practices...the accc will do nothing but lip service and it will go on and on.....

 

[Kelpie]

Following recent revelations, supermarkets are once again in the spotlight.

While we generally think of them as our friendly neighbourhood go-to for groceries, it seems they might not play as nice when it comes to their dealings with suppliers.

Grocery giants have allegedly been involved in giving their suppliers quite the short end of the stick. As per a recent report, various suppliers have suffered 'unauthorised deductions' from their payments.

Complaints were made to the government’s independent reviewer of a voluntary code of conduct. This governs the relationship between the food and grocery manufacturing sector.

It was revealed that these supplier rip-offs are an industry-wide problem.

Woolworths was quick to spring into action, promising it would investigate these concerning allegations.

View attachment 28452

Woolworths responded to the ‘unauthorised deductions issue’. Credit: ArliftAtoz2205/Shutterstock

'We will fix it,' claimed Woolworths CEO Brad Banducci.

According to the report, all major supermarket chains have been involved in this issue. However, ALDI, Coles and Metcash (behind IGA) haven’t responded to these allegations.

Under the law, suppliers and other small businesses are accorded certain protections.

‘It is illegal for a business to behave in a way that misleads or deceives, or is likely to mislead or deceive, consumers or other businesses,’ according to the Australian Consumer and Competition Commission (ACCC). This includes cases where there was no intent on a business’s part to trick anyone, or no loss or damage was incurred by a certain party.

The ACCC also warns businesses against ‘unconscionable conduct’ with customers or other businesses.

Often overlooked, the relationship between supermarkets and their suppliers is a delicate and complex ecosystem likened to a finely tuned orchestra with every instrument playing a synchronous part. Predominantly, those off the supermarket floor perceive only the crescendo—the finished product on the shelves. The many moving parts involved in creating that product, specifically the relationship between retailer and producer, are left unseen.

The symbiotic relationship between supermarkets and their suppliers can also be viewed through the give-and-take dynamics, which foster efficiency and productivity. The supermarkets, in this context, are figuratively seen as the market gatekeepers. They order, store, and subsequently make products available to consumers. In return, suppliers are expected to consistently deliver superior quality goods that meet their stringent quality guidelines and the consumer's expectation of value for money.

However, allegations of unauthorised deductions from supplier invoices strike a dissonant chord in this seemingly harmonious relationship. Many suppliers feed into the big supermarket chains expecting fair treatment and timely payments. But if the orchestra is not playing in tune, it can cause distressing ripple effects.

Consider the humble farmer supplying tonnes of fresh produce to the city supermarkets. An unexpected deduction from an already tight margin invoice can have a significant impact on their livelihood and business viability. At the same time, it questions the integrity of the supermarkets' business practices.

Key Takeaways

• A news outlet reports that ‘unauthorised deductions’ were made to supermarket giants suppliers.
• Woolworths has vowed to investigate complaints from its suppliers after concerns were raised to the independent reviewer of the supermarket chain's voluntary code of conduct.
• Other retailers like Coles, ALDI and Metcash (behind IGA) have not responded to the allegations yet.
• Suppliers and other small businesses are also protected by the law.
• The relationship between supermarkets is a complex and fragile one, and issues like ‘unauthorised deductions’ serve to disrupt the balance between the two. This puts everyday consumers at risk.

The current situation provides a stark reminder that maintaining a balanced and transparent relationship between supermarkets and suppliers is not only crucial for a healthy supply chain, but it plays an intrinsic role in good corporate governance and establishing consumer trust. After all, the relationship is inexorably intertwined—one cannot exist in harmony without the other playing its part.

So, as the saying goes, it's important to ensure all the orchestra's players are getting their fair share of applause... or, in this case, fair payments for produce supplied!

What do you think of this story, members? Share your thoughts in the comments below!

And what about when they enter into a contract with you to buy your cattle at a certain price to be delivered at a certain date and then they pull out and revoke the contract because the price of cattle has dropped on the market.?
Or when they put a clause that your cattle must be within a certain weight scale after being slaughtered and if they fall even 1 Kg outside of these weights they penalise you heavily by anything 10 or 20% of the contract price. Are the meat of those cattle going to be sold at a discount to the public.?
Bloody murderous what they are doing to the farmers.
I have stopped selling cattle to either Coles or Woolworth because of that some years ago but my son got caught a few weeks ago after hand feeding cattle to the market requirements at a contract and then being told that they don't require his cattle because the market price has dropped. If the market would have increased in price would they have been willing to pay him extra for his cattle.? OF COURSE NOT.
That is what the ACCC should investigate and penalise them heavily.
They are a disgrace.

 

[Phantom55]

the ACCC will only give them a ( STERN WARNING) or a token fine and then back to their old tricks as usual ...this has been going on for over 20 yrs..... big companies have that power ...the farmers are the victims and are CONTROLLED by the big supermarkets

 

[Kelpie]

It's been going on for years. It is over 30 years since I closed my business, but even back in those days it was the same
The bigger the business the worse they are. All my customers were on 30 day accounts, but the likes of Myers, Harris Scarfe, etc would usually take 90-120 days to pay, the bigger the company the more they owe. Small business is left struggling to cover costs, pay their own suppliers, pay wages etc .
Worse still when some of those companies go into liquidation the suppliers are the last to be paid, their stock is auctioned by the liquidators, but taxation, workers etc are all paid first and the poor supplier usually ends up with nothing.
Such is the life if small business in Australia

100% correct.
Even Directors and executives will get paid before suppliers.

 

[Shane/#]

Following recent revelations, supermarkets are once again in the spotlight.

While we generally think of them as our friendly neighbourhood go-to for groceries, it seems they might not play as nice when it comes to their dealings with suppliers.

Grocery giants have allegedly been involved in giving their suppliers quite the short end of the stick. As per a recent report, various suppliers have suffered 'unauthorised deductions' from their payments.

Complaints were made to the government’s independent reviewer of a voluntary code of conduct. This governs the relationship between the food and grocery manufacturing sector.

It was revealed that these supplier rip-offs are an industry-wide problem.

Woolworths was quick to spring into action, promising it would investigate these concerning allegations.

View attachment 28452

Woolworths responded to the ‘unauthorised deductions issue’. Credit: ArliftAtoz2205/Shutterstock

'We will fix it,' claimed Woolworths CEO Brad Banducci.

According to the report, all major supermarket chains have been involved in this issue. However, ALDI, Coles and Metcash (behind IGA) haven’t responded to these allegations.

Under the law, suppliers and other small businesses are accorded certain protections.

‘It is illegal for a business to behave in a way that misleads or deceives, or is likely to mislead or deceive, consumers or other businesses,’ according to the Australian Consumer and Competition Commission (ACCC). This includes cases where there was no intent on a business’s part to trick anyone, or no loss or damage was incurred by a certain party.

The ACCC also warns businesses against ‘unconscionable conduct’ with customers or other businesses.

Often overlooked, the relationship between supermarkets and their suppliers is a delicate and complex ecosystem likened to a finely tuned orchestra with every instrument playing a synchronous part. Predominantly, those off the supermarket floor perceive only the crescendo—the finished product on the shelves. The many moving parts involved in creating that product, specifically the relationship between retailer and producer, are left unseen.

The symbiotic relationship between supermarkets and their suppliers can also be viewed through the give-and-take dynamics, which foster efficiency and productivity. The supermarkets, in this context, are figuratively seen as the market gatekeepers. They order, store, and subsequently make products available to consumers. In return, suppliers are expected to consistently deliver superior quality goods that meet their stringent quality guidelines and the consumer's expectation of value for money.

However, allegations of unauthorised deductions from supplier invoices strike a dissonant chord in this seemingly harmonious relationship. Many suppliers feed into the big supermarket chains expecting fair treatment and timely payments. But if the orchestra is not playing in tune, it can cause distressing ripple effects.

Consider the humble farmer supplying tonnes of fresh produce to the city supermarkets. An unexpected deduction from an already tight margin invoice can have a significant impact on their livelihood and business viability. At the same time, it questions the integrity of the supermarkets' business practices.

Key Takeaways

• A news outlet reports that ‘unauthorised deductions’ were made to supermarket giants suppliers.
• Woolworths has vowed to investigate complaints from its suppliers after concerns were raised to the independent reviewer of the supermarket chain's voluntary code of conduct.
• Other retailers like Coles, ALDI and Metcash (behind IGA) have not responded to the allegations yet.
• Suppliers and other small businesses are also protected by the law.
• The relationship between supermarkets is a complex and fragile one, and issues like ‘unauthorised deductions’ serve to disrupt the balance between the two. This puts everyday consumers at risk.

The current situation provides a stark reminder that maintaining a balanced and transparent relationship between supermarkets and suppliers is not only crucial for a healthy supply chain, but it plays an intrinsic role in good corporate governance and establishing consumer trust. After all, the relationship is inexorably intertwined—one cannot exist in harmony without the other playing its part.

So, as the saying goes, it's important to ensure all the orchestra's players are getting their fair share of applause... or, in this case, fair payments for produce supplied!

What do you think of this story, members? Share your thoughts in the comments below!

Did I hear ACCC the TOOTHLESS TIGER the government agency is as weak as piss ,shit frightened to actually give massive fines to these multinational/Australian companies billion dollars profit prove this start protecting the small business sector from these predators and dish out millions in fines and grow a spine hmmmm not likely

 

[trakn]

And what about when they enter into a contract with you to buy your cattle at a certain price to be delivered at a certain date and then they pull out and revoke the contract because the price of cattle has dropped on the market.?
Or when they put a clause that your cattle must be within a certain weight scale after being slaughtered and if they fall even 1 Kg outside of these weights they penalise you heavily by anything 10 or 20% of the contract price. Are the meat of those cattle going to be sold at a discount to the public.?
Bloody murderous what they are doing to the farmers.
I have stopped selling cattle to either Coles or Woolworth because of that some years ago but my son got caught a few weeks ago after hand feeding cattle to the market requirements at a contract and then being told that they don't require his cattle because the market price has dropped. If the market would have increased in price would they have been willing to pay him extra for his cattle.? OF COURSE NOT.
That is what the ACCC should investigate and penalise them heavily.
They are a disgrace.

Sold yearlings to woolworths 30 odd years ago for what seemed a fair price for the time. Weighed all cattle and signed contract for agreed price per kilo live weight.
Only to be told they would pick stock up in 6-8weeks.
Following season they returned and purchased stock . Contract was signed , again told they would pick up in 6-8 weeks. Told them that's fine but the purchased cattle would not be leaving stockyards til they were collected . Would water them but wouldn't be feeding them. Big song and dance ensued. Cattle were picked up 2 days later.
Never dealt with supermarkets again.

 

[Kelpie]

Sold yearlings to woolworths 30 odd years ago for what seemed a fair price for the time. Weighed all cattle and signed contract for agreed price per kilo live weight.
Only to be told they would pick stock up in 6-8weeks.
Following season they returned and purchased stock . Contract was signed , again told they would pick up in 6-8 weeks. Told them that's fine but the purchased cattle would not be leaving stockyards til they were collected . Would water them but wouldn't be feeding them. Big song and dance ensued. Cattle were picked up 2 days later.
Never dealt with supermarkets again.

Can't understand as to wy the ACCC is not looking into this and fine them accordingly not just with a slap on the wrist but a few million dollars fine and then multiply it by many multiples if they are doing it again.
And what about to the cattle that my son got ready for them and now they don't want them.? If and when they will come back (I doubt they will), those cattle will be outside the nominted grid and will not be paid at the agreed price either.

 

[relljube]

the ACCC will only give them a ( STERN WARNING) or a token fine and then back to their old tricks as usual ...this has been going on for over 20 yrs..... big companies have that power ...the farmers are the victims and are CONTROLLED by the big supermarkets

ACCC is a toothless tiger - looking out for their mates. Need a broom through the whole heirachy