John Wood
Wholesalers are warning that the introduction of factory gate pricing threatens to pass on extra costs to their sector. And they are calling for urgent talks with suppliers.
Many blue chip companies that currently deliver to the major multiples' central distribution warehouses place extra pallets on their vehicles to be dropped off, as small deliveries, to cash and carries which a lorry may be pass.
However, the Federation of Wholesale distributors is warning that if the multiples are picking up full loads at the factory gate this opportunity will disappear.
The Federation's director general Alan Toft said: "The emphasis on factory gate pricing is with the superstores but suppliers now realise that the issue is more complicated.
"If the supplier loses the flexibility of sending out a truck with enough produce on it for one superstore plus two or three smaller drops to wholesalers, then severe cost implications arise."
He added: "Small wholesalers could be asked to pay a realistic rate for small deliveries which would be much higher than the current level where delivery costs are amortised over several individual depots or customers."
Toft said one supplier had told him it would have to double its delivery charges if factory gate pricing became the norm.
The issue would not affect the largest wholesalers, such as Booker, and Palmer & Harvey McLane, where full loads were usual, said Toft.
However, for about 400 small to medium size wholesalers, three or four pallets was a normal deliver, he added.
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Wholesalers are warning that the introduction of factory gate pricing threatens to pass on extra costs to their sector. And they are calling for urgent talks with suppliers.
Many blue chip companies that currently deliver to the major multiples' central distribution warehouses place extra pallets on their vehicles to be dropped off, as small deliveries, to cash and carries which a lorry may be pass.
However, the Federation of Wholesale distributors is warning that if the multiples are picking up full loads at the factory gate this opportunity will disappear.
The Federation's director general Alan Toft said: "The emphasis on factory gate pricing is with the superstores but suppliers now realise that the issue is more complicated.
"If the supplier loses the flexibility of sending out a truck with enough produce on it for one superstore plus two or three smaller drops to wholesalers, then severe cost implications arise."
He added: "Small wholesalers could be asked to pay a realistic rate for small deliveries which would be much higher than the current level where delivery costs are amortised over several individual depots or customers."
Toft said one supplier had told him it would have to double its delivery charges if factory gate pricing became the norm.
The issue would not affect the largest wholesalers, such as Booker, and Palmer & Harvey McLane, where full loads were usual, said Toft.
However, for about 400 small to medium size wholesalers, three or four pallets was a normal deliver, he added.
{{NEWS }}
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