In response to an article on loss prevention yesterday, a leading supplier has slammed major retailers for their complacency and how they pass the buck when it comes to trying to quell shrinkage.
A former product manager and sales manager for technology products to major supermarket chains, who chose to remain anonymous, has vented in an interview with Current.com.au about some of the issues raised in yesterdays article, in particular the fact that the majority of retailers are happy with their current levels of shrinkage.
“I’ll tell you why large Australian retailers like Coles and Woolworths are happy with their shrinkage levels – because they charge suppliers for it,” he said.
The source commented that some retailers deduct shrinkage from supplier payments, claiming it is their fault.
“Not from experience with my current employer, but in past positions the shrinkage at store level was deducted from the monthly payment to suppliers, shrinkage was the supplier’s fault.”
The article yesterday mentioned that a large proportion of shrinkage is due to internal errors and poor stock control from retailers, but the source claimed they still make suppliers pay for it.
“Even if it was due to poor stock control, suppliers paid, just like they pay for the majors to accept goods through logistics, only to be supplied in the wrong trucks,” he said.
“Perhaps this is why some retailers are in such a mess, poor management has avoided fixing their own problems and simply passed the costs onto suppliers, leaving inefficiencies in the supply chain.”