SM - unfair and illegal practices??

[ghosthunter]

This is a memo from SM FOODS stating that all suppliers should not have mixed loads in their delivery trucks when dropping off their loads at the SM depot. It also states SM will confiscate the goods that aren't to be delivered to them and will even charge the owners of the truck a "storage fee" for holding their goods.



LINK: http://i641.photobucket.com/albums/u...ps294467dc.jpg

Forcing a distribution company to separately deliver SM goods from other customers is economically unfeasible (unless it is a full load of SM goods). Also "confiscating" goods from the delivery truck is considered "qualified theft" because SM does not own those goods.

What gives SM the right to declare their own laws and rules? They might be one of the bigger retailers in the country but they aren't the only retailer in the country. They might just force their suppliers to boycott sending them products to sell. It has happened before.

[vinj]

WTF are those guys smoking? It's already bad enough that businesses dealing with SM are working against tight margins.

[Lew_Alcindor]

I do not know if it is illegal but it is definitely not a good policy.

What is the rationale for this policy?

Imagine the additional fuel needed to make the additional trips by the delivery vans.

[ghosthunter]

I do not know if it is illegal but it is definitely not a good policy.

What is the rationale for this policy?

Imagine the additional fuel needed to make the additional trips by the delivery vans.

Exactly. That shows how they only consider themselves and forgot that their suppliers also have other customers to consider. They do not care if their suppliers loose money every delivery as long as their unreasonable rules are followed. SM forgets that they were also once a small company doing business like everyone else.

[Manilablock]

this is to kill other business operating near to SM.

kaya nga meron mga nakasabay na ibang item ay dahil magkalapit lang ang delivery, malapit lang ung kalaban na tindahan.

[uls]

I do not know if it is illegal but it is definitely not a good policy.

What is the rationale for this policy?

Imagine the additional fuel needed to make the additional trips by the delivery vans.

SM: not my problem

and that's the whole point

[ghosthunter]

If SM insists on it's policy, we will then only delivery to SM if and when we have a delivery truck full of their goods. It will be SM's problem to send enough purchase orders to fill a delivery truck otherwise we will just continue serving our other customers... and many of them are growing big as well. We have other customers to serve that are not unreasonable in their policies.

[crazy_boy]

If SM insists on it's policy, we will then only delivery to SM if and when we have a delivery truck full of their goods. It will be SM's problem to send enough purchase orders to fill a delivery truck otherwise we will just continue serving our other customers... and many of them are growing big as well. We have other customers to serve that are not unreasonable in their policies.

Hindi ba may penalty din if hindi ka maka deliver?

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[111prez]

Unfortunately, these type of policies are more of a reputational issue than legal.

I doubt if there is a law regulating this practice, whether under consumer protection, civil law, corporate or even criminal law.

[CSERVICE SMFOOD]

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

[K.I.L.L.]

I remember when colgate-palmolive stopped supplying to SM and for a time, you can't see any of CP's products in their shelves. A friend in told me that though in the long term, their annual sales would have gone down, they're probably in a better cash position since SM really stretches credit terms.

[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.

[uls]

I do not know if it is illegal but it is definitely not a good policy.

What is the rationale for this policy?

Imagine the additional fuel needed to make the additional trips by the delivery vans.

to discourage suppliers from supplying competitors

make it harder for suppliers to supply to both SM and competitors

so you choose -- SM o kalaban ng SM

[vinj]

SM forgets that they were also once a small company doing business like everyone else.

This i think is something that they forgot about, big time. Very sad indeed as the company had quite humble beginnings. I think this has become more evident as the health of Tatang deteriorated and the next generation took over the day-to-day operations.

to discourage suppliers from supplying competitors

make it harder for suppliers to supply to both SM and competitors

so you choose -- SM o kalaban ng SM

I was told before by one SM supplier on how they employ underhanded tactics to hamper supplies to competitors who are beating them.

[uls]

This i think is something that they forgot about, big time. Very sad indeed as the company had quite humble beginnings. I think this has become more evident as the health of Tatang deteriorated and the next generation took over the day-to-day operations.

I was told before by one SM supplier on how they employ underhanded tactics to hamper supplies to competitors who are beating them.

very Kano ang style

the generation after Tatang is more westernized

if you're familiar with Walmart's business practices you can sense SM using Walmart-style tactics (like Walmart pressures suppliers to sell goods below cost or at lower prices than to other retailers)

[garfield_08]

Exclusive supplier for SM? LOL.

Malls are sprouting everywhere. Di lang sila ang choice ng consumers. Baka meron nagla-lobby maging exclusive supplier ng SM, making it harder for other suppliers to comply.

[c_cube]

naaapektuhan na kasi sila ng puregold na sumusulpot na din kung saan saan.

[uls]

naaapektuhan na kasi sila ng puregold na sumusulpot na din kung saan saan.

yep

i think SM is afraid of Puregold

[uls]

SM motto towards suppliers: you need us more than we need you

[brainmafia_310]

So kung ako naman ang supplier, huli ko idedeliver items ko sa sm.

Imho, might be some reasons are inside trading. May nakakwentuhan lang ako na minsan daw like furnitures and etc etc, nakakaorder din sila using sm. Then baka may mauutak na maliliit na retailer sa tabi ng sm na selling the same at veru cheap margin.

Might be eto reason bakit nila ginawa ito. Nagiging storage pa ng mga tao nila ung mall mismo.

Just my 2cents.

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