Supply Chain, Distribution, and Procurement

Both Foodstuffs Companies operate central wholesale distribution to ensure efficient supply of goods to all our members and cash and carry sites. You can discuss with your category manager in each region whether some or all of your range may be suitable for central distribution. We also offer Primary Freight, making full use of our trucks returning from market deliveries. 

Here at Foodstuffs, we have developed controls to ensure the most efficient stock management. These controls include the management of inventory holding both in physical stock and stock values. We set target expectations for stock cover and lead times for deliveries. We address overstocks, non-performing and redundant articles through supplier cooperation to clear or uplift stock if needed.

Service levels, both inbound and outbound, are critical business measures. We have a high expectation that you will provide total supply for all items and all orders. If your products are accepted for central distribution you can expect that we will constantly remind you of your obligations to our business and promotional commitments. Our expected Key Performance Indicators (KPIs) for both inbound and outbound service is 97%. In the case of promotional articles and Private Label, your commitment should meet 100%.

Our Distribution Centre (DC) operations are extremely disciplined, so we can operate effectively with the large number of orders received each day. 

Supplier Order Picking, Despatch and Deliveries

The following aspects of DC operation are common to all of Foodstuffs:

Timing
You need to pick and dispatch purchase orders to meet the agreed scheduled delivery day/time. For all Inwards deliveries you must have a prearranged book in time, which is made no less than 24 hours prior to delivery. Contact each DC to arrange book in times.

Delivery Documents
Please ensure that physical copies of the packing slip and delivery docket/proof of delivery are presented to the Distribution Centre staff on arrival. These documents must accompany each consignment. The packing slip must reference the appropriate Foodstuffs purchase order number.

Pallet Configurations and Management
You must place each product on a separate pallet (CHEP or Loscam). Dated goods with less than 90 days shelf life must also be separated on their own pallet when there are two or more dates for the same SKU.

Your pallets must be supplied wrapped and in good condition to minimise damaged goods.

To fit safely into our DCs, single SKU ambient pallets must be a maximum height of 1.40m (including the pallet). Chilled and Frozen pallets must have a maximum height of 1.20m (including the pallet). 

No pallets can exceed one tonne in weight (inclusive of pallet).

All pallets are managed on a transfer system. Foodstuffs will arrange to transfer pallets onto their account from a nominated suppliers account. This is facilitated by the CHEP and Loscam pallet transfer system. To ensure this process is effective, you must complete a Pallet Levy Authorisation Form (at right) prior to your products being accepted into the DC for the first time.

Produce Crates

Foodstuffs South Island has specific requirements for all fresh produce and butchery supply into our temperature controlled distribution centres. Please ensure you are familiar with these and comply for every delivery.

Product Labelling
All outer cartons must be labelled with a GS1 approved barcode. Products supplied with less than 90 days shelf life must contain a GS1-128 format carton barcode, that includes the Use by/best before date. You also need to provide this information in a human-readable format on your labels. Products with a longer shelf life only need to use a GS1-14 format carton barcode.

Variable (Random) Weight products must have a carton and each barcode containing the approved application identifiers.  Refer to the local Foodstuffs operations guidelines for this detail.

Unloading
When we receive goods into our DCs, the consignment note will be signed only for the number of pallets received and will be signed STC (subject to check). 

Damages & Discrepancies
The Foodstuffs DC receiving staff will check the pallets on arrival.  Any obvious damage or omissions will be noted where possible on the driver's copy of the consignment note, and clearly signed by both parties. We will let you know all relevant details of the product damage, or count discrepancy within 24-hours of delivery.

Don’t forget to provide the correct contact details to the Inward Goods Supervisor & Foodstuffs Procurement contact for delivery discrepancy advice. Accuracy is important!

Temperature Controlled Distribution Centre
This is a specialised operation and has comprehensive procedures and guidelines that all suppliers to these facilities need to be aware of. We recommend you download the rlelevant Foodstuffs Operations Guidelines document to become familiar with these requirements.

Primary Freight 

Foodstuffs operates a freight network that includes primary freight, which is managing supplier consignments within the Foodstuffs Supply Chain nationwide. We value a best practice partnership with Suppliers that provides opportunity to improve supply chain optimisation, visibility and cost transparency.

If you have any questions on Primary Freight, just get in touch with the appropriate regional logistics group:

North Island: transport@foodstuffs.co.nz

South Island: TSI Logistics - tsi@foodstuffs-si.co.nz

Vendor Stock Holding (VSH)

Vendor Stock Holding  is available within Foodstuffs South Island (FSSI) through a third-party logistics (3PL) process. Supplier-owned stock can be held within FSSI Christchurch Ambient and Chilled DCs, and the Dunedin Ambient DC while still retaining ownership of stock. VSH allows high volume lines to be stored over a long period at any given time. Suppliers can use the VSH process for standard stock, seasonal or promotional stock builds.

VSH holding creates significant reduction in product handling, lower costs and improves service levels and lead-time for suppliers and their customers.

Contact Charyl O'Leary for more information about VSH at Foodstuffs South Island at Vendor.Stock.Holding@foodstuffs-si.co.nz

Cross Docking

Foodstuffs South Island (FFSI) supports Cross Docking for both ambient and temperature controlled products.  Cross docking is the transfer of incoming products directly to outgoing transport without storing them in-between, reducing costs and total lead times from order to delivery. It is most suitable for products that are not core ranged, or with short shelf-life, where distribution through Foodstuffs supply chain to our markets is needed.

Cross docking essentially eliminates the inventory- holding function of a warehouse while still allowing it to serve its consolidation and shipment functions.

How Cross Docking Works today:

1.The customer places an order directly with supplier 

2. The supplier assembles all customer orders into store ready lots

3. The supplier arranges a delivery time with FSSI DC warehouse and delivers all customer orders to FSSI DC

4. The delivery is placed in a staging area until the next delivery to the customer

5. FSSI DC adds the applicable cartons to the next customer delivery

6. The supplier is paid and the customer is charged using the charging through system

Contact us for more information about Cross docking at Foodstuffs South Island 

Vendor Managed Inventory (VMI)

Here at Foodstuffs, we’re really proud to have been in successful VMI partnerships with suppliers since 2000. VMI is a partnership between Foodstuffs and our key suppliers to improve how we both manage stock replenishment of products through the various stages of listing, continuous replenishment and run down with Foodstuffs.

If you’d like to join our VMI programme, you need to employ a dedicated resource who will effectively manage your own products remotely, using Foodstuffs replenishment system. When you do this, you get greater visibility of your inventory status and product sales performance. The VMI partnership also gives other benefits to you, including:

• New Product Development: You enhance the management and timeliness of New Products to Foodstuffs
• Promotions: Improved planning and co-ordination of promotions
• Stock Levels: Increased visibility of stock and sales allows close monitoring of existing inventory levels, which results in reduced out of stocks.

Our participating suppliers have seen immediate benefits from VMI, as have our members and customers.

An information pack is available upon request from the Merchandise Operations Manager at Foodstuffs South Island or Smita Gazi at Foodstuffs North Island.

Pallet Management at Foodstuffs South Island

All products must be received on either a CHEP or Loscam pallet. All Pallets received by the DC are managed on either the CHEP or Loscam transfer system. FSSI transfer the pallet quantity onto the relevant DC account from a supplier or nominated carrier's account daily via an electronic batch to CHEP or Loscam. Please complete and return the Pallet Transfer Levy Authorisation form found at the link below. This must be done prior to delivering any stock.

Foodstuffs South Island - Pallet Transfer Levy Authorisation Form

Foodstuffs North Island Distribution Centres

Foodstuffs North Island operates central distribution centres (DCs) located throughout the North Island including Auckland, Rotorua Palmerston North and Wellington. These DCs are replenished by central buying team located at the Foodstuffs Corporate offices in Auckland, Wellington and Palmerston North. We purchase both ambient and temperature-controlled merchandise as well as Produce. Our purchasing patterns are set up to fully use the efficiencies of the trading terms agreed with our vendors. Our DCs are a hub for distribution to retail sites and Gilmours Cash and Carry sites located in key centres throughout the North Island.

Foodstuffs North Island Limited operates five distribution centres and four transport depots within the North Island. Any queries related to these Distribution centres should be made through the call centre on 0800 212 700

Foodstuffs South Island Distribution Centres

Foodstuffs South Island operates central distribution centres (DCs) located at Hornby in Christchurch, as well as in Dunedin. These DCs are replenished by the central buying team located at the Foodstuffs Corporate office in Papanui. We purchase both ambient and temperature-controlled merchandise. Our purchasing patterns are set up to fully use the efficiencies of the trading terms agreed with our vendors. Our DCs are a hub for distribution to retail sites and Trents Cash and Carry sites located in key centres throughout the South Island.

Foodstuffs South Island Limited operates three distribution centres within the South Island.