SM - unfair and illegal practices??

[boybi]

The sad part to all of these ridiculous policies and demands from these big supermarkets, other smaller grocery stores have started to do the same. Making life harder for suppliers and distributors. And prohibiting new and small enterprises to sell to them. This, in time, would kill the small time businesses that won't have a place to sell their goods anymore. The aggressive branching out of big time supermarkets will close down the smaller one, the customers of the small time enterprises.

[K.I.L.L.]

From the supermarkets (with more than one location in Metro Manila), only LANDMARK and CHERRY are very friendly to suppliers. They do not charge listing fee or entry fee when new products are introduced to them. The only difficult part with LANDMARK and CHERRY is getting your products approved by the "buyers" and actually finding shelf space in the selling area to display your items.

Other supermarkets charger hundreds if not thousands of pesos per "SKU" (stock keeping unit). Add to that, other supermarkets also charge their suppliers "merchandizer fee", display rental fee, and some even require their suppliers to join quarterly promos at supplier's cost. All that is supposedly to help pay for their operational overhead. Yet that same stores still end up selling goods are that MORE EXPENSIVE than other supermarkets.

I hope they don't charge for shrinkage / pilferage too.

[ghosthunter]

I hope they don't charge for shrinkage / pilferage too.

On that problem, the supermarkets (and other retailers) have switched from outright purchases of goods to consignment. So suppliers are only paid for goods that pass through the cash register. This method results with the supplier losing money each time an item is shoplifted. The store itself does not suffer a single peso of loss.

Some stores have adjusted or added their security based on supplier complaints, so it's not too bad at some stores. But other stores simply do not do a thing to minimize theft of goods, hence you see some consignors pulling out their stocks permanently.

[uls]

big retailers to small suppliers: you need us. so stop whining

[Ry_Tower]

Nauna na ganyang style ang Puregold although sa kanila okay lang basta may receipt ka nung stocks na hindi para sa PG at kung may mga bad orders/returns na stocks, dapat may papeles din or else confiscated. Reason behind this is baka kung walang papeles eh palusot nang bodegero etc ni PG at siyempre ihohold nga naman nila dahil theft yun.

I think yan din nasa isip ni SM but to make things simpler for them and tougher for suppliers, no co-loading na talaga. Not illegal but definitely a pain in the ass.

[Ry_Tower]

You cannot do that because SM sets a day and time when you can drop off your delivery.

Example: every Tuesday, 9am to 12noon to line up for receiving your delivery's papers... then your truck spends the rest of the day waiting for them to receive your goods. That might take an hour to six hours or even more.

What's sad is sometimes hindi ka ma-accomodate kasi hindi na kaya tauhan nila if may mga absent. Go back the next day ka at pila ulit!!!

Gastos talaga kasi dapat talaga may extra delivery truck ka. Hindi kasi puwede sa kanila yung iiwan mo invoice at since matagala ka pa naman for sure ehe punta ka muna sa iba. Dapat sa pila ka pa din, hindi ka paalisin.

[ghosthunter]

What's sad is sometimes hindi ka ma-accomodate kasi hindi na kaya tauhan nila if may mga absent. Go back the next day ka at pila ulit!!!

Gastos talaga kasi dapat talaga may extra delivery truck ka. Hindi kasi puwede sa kanila yung iiwan mo invoice at since matagala ka pa naman for sure ehe punta ka muna sa iba. Dapat sa pila ka pa din, hindi ka paalisin.

On some deliveries, the truck is already at the depot and waiting in line since 6 or 7am ... and then only to be processed and received around 7 pm.... mabuti if you are delivering a whole truck-load of goods. What about other suppliers who only deliver a few boxes worth of goods? Stuck din sila in the same line.

[wowiesy]

In regards to the Colgate issue, it was unreasonable demands from SM for shelf rental prices. It is no secret that supermarkets already charge suppliers a "rental fee" to display goods on store shelves, but the rental prices are getting ridiculous if they know your product line is categorized as a "fast moving" item.

Remember, all of that reflects in the retail prices you eventually pay at the cash register.

but for brand owners... kung may competition ka.. and you are trying to maintain a price gap between you and your competitor... there's only so much you can do para ibalik yun sa SRP ng product... sa dulo.. it will still hit the bottom line of the brand owner...

[wowiesy]

From the supermarkets (with more than one location in Metro Manila), only LANDMARK and CHERRY are very friendly to suppliers. They do not charge listing fee or entry fee when new products are introduced to them. The only difficult part with LANDMARK and CHERRY is getting your products approved by the "buyers" and actually finding shelf space in the selling area to display your items.

Other supermarkets charger hundreds if not thousands of pesos per "SKU" (stock keeping unit). Add to that, other supermarkets also charge their suppliers "merchandizer fee", display rental fee, and some even require their suppliers to join quarterly promos at supplier's cost. All that is supposedly to help pay for their operational overhead. Yet that same stores still end up selling goods are that MORE EXPENSIVE than other supermarkets.

yes.. especially SM... with all the "support" they get from suppliers.. they still have relatively higher tag prices on their goods... dito naman yung leverage nya... mas puntahan ng mga tao ang SM Malls vs the other malls... leverage pa rin nila yung brand name nila.. yung sinehan.. yung line up of retailers in their malls... the events they have in their events venue.. all those to draw the people in.... ang lahat ng yan.. may kapalit...

[wowiesy]

The sad part to all of these ridiculous policies and demands from these big supermarkets, other smaller grocery stores have started to do the same. Making life harder for suppliers and distributors. And prohibiting new and small enterprises to sell to them. This, in time, would kill the small time businesses that won't have a place to sell their goods anymore. The aggressive branching out of big time supermarkets will close down the smaller one, the customers of the small time enterprises.

Tama.

In the future, it will be harder for the small time entrepreneur to startup and sell his wares in the store chains...

sa pag expand ng mga store chains, unti unti na rin pinapatay ang mga public market... do you , or do you know of anybody in your friend list who do their 100% grocery shopping in public market? or sa mga supermarket / grocery stores near and around the public markets? marami pa rin bumibili ng fresh fish and veggies sa public market.. pero yung other goods (canned goods, dry goods, etc.. ) karamihan sa chain stores na.. kasi may aircon. may sounds.. may points pa...

maiiwan.. puro big boys na lang.. both sa retail side... and also sa supply side (brand owners / importers / distributors)... capitalism at its best...

[wowiesy]

We would like to thank you for calling our attention on the policy regarding goods received at our warehouse. The memo was created with the good intention of maintaining order and smooth business operations during high volume business days.

Rest assured that we will discuss this in greater detail with our suppliers to further clarify the issues arising from the policy.

Romil Acosta
VP-Supply Chain and Logistics
SM Food Retail

It's a welcome surprise that a VP of SM monitors this thread during office hours.. and takes time to comment pa...

but PR is geared more towards the end consumers.. the shoppers... sad part is they don't need a PR campaign to pacify their suppliers... since marami naman nakapila na willing mag supply sa kanila.... their PR is only needed sa end consumers / shoppers.. since yun ang key... shoppers is king.. sa dami ng competition ng mall.. brands.. categories... it is up to the shopper / consumer to choose... kaya all this is being done ng mall owner to get the shopper / consumer to go in their malls... and then maximize their profit from that...

I don't also think the government will step in anytime soon... it is easier for the government (whether LGU, or the National Government) to turn a blind eye sa ganito... tutal mas mabilis makapag kolekta ng taxes and fees from the bigger companies (who are generally more compliant, since they stand to lose more if they don't comply) than from the smaller companies (mas efficient mag kolekta sa isang super laki na kumpanya.. vs the same collection amount from 100 smaller companies... lesser effort)... and the great thing from the point of view of the bigger companies... they just pass it all on to the consumer... tutal the consumer is willing to buy naman eh...

[shadow]

what;s the deal with SM bonus products? totoo ba na bigay rin ng mga suppliers pag naka quota daw? kasi wala naman manufacturing ang SM and yet they have SM bonus products..hinde lang nga regular kaya parang totoo yun pag naka quota dapat meron bonus SM

[wezz_zzew]

Acting like a God Father. I'm gonna make him an offer he cannot refuse.

[Phoenix67]

what;s the deal with SM bonus products? totoo ba na bigay rin ng mga suppliers pag naka quota daw? kasi wala naman manufacturing ang SM and yet they have SM bonus products..hinde lang nga regular kaya parang totoo yun pag naka quota dapat meron bonus SM

Hindi siya bigay...it is acquired through a process. Check the manufactuturer sa label ng mga SM Bonus...iba-ibang company ang may-ari. These are products we call - toll manufactured . Kaya sa label madalas na kasulat - "manufactured for".

[niky]

Yup. Unless Divi or direct outlet, some of the dry goods, even the local dry goods, are more expensive in the public markets than in the malls.

[ghosthunter]

what;s the deal with SM bonus products? totoo ba na bigay rin ng mga suppliers pag naka quota daw? kasi wala naman manufacturing ang SM and yet they have SM bonus products..hinde lang nga regular kaya parang totoo yun pag naka quota dapat meron bonus SM

SM Bonus products are products manufactured to a target price point. Not only SM does it. Rustans, Ace, Robinsons, etc all do it. Usually the supermarket (example SM) would ask one of their suppliers if they can produce a "bonus" product but they have to do it at a cheaper price than the leading brands on the shelves. Example the regular product line sells for P99.75 SRP. The "bonus" product will have to sell at below that price, say around P92.75 SRP. It comes out you are competing against your own product.

And there is no guarantee they will keep on buying from you. If you have a warehouse full of stocks, then another company offers the same "bonus" product at P90.75, SM can just drop you like a hot stone and switch over to the cheaper supplier. You get stuck with a warehouse full of unsellable goods because they are all labelled "BONUS".

[vinj]

From the supermarkets (with more than one location in Metro Manila), only LANDMARK and CHERRY are very friendly to suppliers. They do not charge listing fee or entry fee when new products are introduced to them. The only difficult part with LANDMARK and CHERRY is getting your products approved by the "buyers" and actually finding shelf space in the selling area to display your items.

Other supermarkets charger hundreds if not thousands of pesos per "SKU" (stock keeping unit). Add to that, other supermarkets also charge their suppliers "merchandizer fee", display rental fee, and some even require their suppliers to join quarterly promos at supplier's cost. All that is supposedly to help pay for their operational overhead. Yet that same stores still end up selling goods are that MORE EXPENSIVE than other supermarkets.

This explains why i like shopping at Landmark. Good choices at good prices.

SM Bonus products are products manufactured to a target price point. Not only SM does it. Rustans, Ace, Robinsons, etc all do it. Usually the supermarket (example SM) would ask one of their suppliers if they can produce a "bonus" product but they have to do it at a cheaper price than the leading brands on the shelves. Example the regular product line sells for P99.75 SRP. The "bonus" product will have to sell at below that price, say around P92.75 SRP. It comes out you are competing against your own product.

And there is no guarantee they will keep on buying from you. If you have a warehouse full of stocks, then another company offers the same "bonus" product at P90.75, SM can just drop you like a hot stone and switch over to the cheaper supplier. You get stuck with a warehouse full of unsellable goods because they are all labelled "BONUS".

Sucks when suppliers are not treated as "business partners" eh.

[Boy Bastos]

Our family used to supply grocery products for SM. We stopped na some years ago. Sakit lang sa ulo at delayed ang payment up to 6 months. Imagine, deliver ka to re-stock 3-4 times a month. Gumastos ka ng tao, fuel, lagay sa traffic enforcer at pulis, etc. tapos after a few months pa ang bayad.

You can understand their policy like this but delayed payment sa supplier? BS.

[Phoenix67]

I think masyadong nagpapayabangan ang mga managers, asst managers and VPs kaya naglabasan ang ganyang policies. I wouldn't be surprised if maging next MAKRO sila. Pati nga mga karne, yung mga Bonus line nila parang mga botcha na karne kasi yun ang mga imported ng frozen meat (more than three months na sa freezer).

Yung post ng taga SM (kung tutuo man) ay standard format reply nila sa mga complaint...I doubt na may pagbabago na mangyayari dyan.

I use to operate a stall sa SM Clark renting out RC Cars...lugi ako sa mahal ng renta, tapos panay pa ang pabago nila sa stall setup ko (like as if it was free)...in the end it was cheaper for me to close my shop and pay-up my tauhan ng separation pay.

[ghosthunter]

I use to operate a stall sa SM Clark renting out RC Cars...lugi ako sa mahal ng renta, tapos panay pa ang pabago nila sa stall setup ko (like as if it was free)...in the end it was cheaper for me to close my shop and pay-up my tauhan ng separation pay.

I know how you feel. I have a friend who had a nail salon at one of the SM Malls. The mall forced her to move her store from the original location with high traffic to an isolated end of nowhere location in the same mall. She even had to shoulder the cost of moving to a new store space including renovating the new store space, etc. Obviously business dropped like a rock and eventually she closed her store there.