0.46ppl backdated rebate for Sainsbury’s suppliers
Posted on: 16/11/18
Sainsbury’s have back-dated a 1st October additional 0.46ppl increase to its SDDG suppliers following a recent review of it’s COP model involving family labour as operated by Kite Consultancy.
Less than two months ago in this bulletin we featured a news item “Sainsbury’s under attack from its farmer suppliers”. This followed the retail giants decision to pay its farmers only 0.6ppl out of a 0.9ppl loss having incorrectly costed Megalac and calf milk powder in the model at the feed wheat price. Having identified the error this extra wasn’t backdated and yes Sainsbury’s pocketed the 0.3ppl.
In that same article Ian referred to the constant dilution of the COP model in ppl terms for family labour and now they have tried to correct this error.
The big question Sainsbury’s suppliers need an answer to is why their retailer model is so wrong and requiring surgery. First the extra on feed and now extra on family labour. It’s looking like a lot of back-tracking and a flawed/broken model. Time for some answers and an independent review.