Good Faith Receiving Challenges Retail Supply Management Convention
– Reduced Claims by up to 90% Reported
The adoption of Good Faith Receiving (GFR), currently embraced by the retail food supply chain by brands such as Asda, Morrisons, Sainsbury’s and Waitrose, concerns stock being received without checking (barring a rudimentary check).
It is generally accepted that, throughout the supply chain, checked-in stock is accurate. Stock checking is costly in terms of staff and space allocation and is often not needed. Before GFR, supermarkets could question any load received which often led to spurious claims and supplier payment delays. With GFR, issues are dealt with at one time based on a stock sample.
Good Faith Receiving – Benefits:
- Faster delivery turnaround times resulting in increased supplier efficiency
- Labour cost savings by accepting supplier deliveries in good faith
- Trusted data providing a coherent commuted claims process
- Real-time data driving immediate, simple query resolutions
- Improved stock flow
GFR has proved a catalyst in reducing delays and large sums of money being deducted from suppliers. A workgroup of 20 suppliers was formed in 2014, led by Jonathan Kittow, Director at Simply Supply Chain*, aimed at bringing the practice of ‘drop and drive’ to the attention of Christine Tacon, the Groceries Code Adjudicator.
Evidence showed participating suppliers were being deducted, without any substantiation, £15m a year between them for alleged delivery discrepancies. It was this evidence that Christine Tacon needed to publish a damning dossier on the practice and to introduce Good Faith Receiving. In 2018 those same suppliers who fully engaged with GFR are now seeing reduced claims by up to 90%.
In-DEX WMS Warehouse Management Software
– Supports Good Faith Receiving
In-DEX WMS Warehouse Management Software has a worldwide patented unique numbering system as its backbone. When stock is receipted it automatically stamps the goods with a unique reference (UR) against which all traceable information is electronically held (batch, best before dates, lot numbers etc.).
When pickers are sent to pick stock the article they are picking into/onto gets stamped with a unique reference. In effect, picks are managed as stock transfers, from the pick face to the unique reference they are being picked onto.
The patented In-DEX system holds the “From” and “To” Unique reference and can provide full forwards and backwards traceability on any of the associated traceable information.
As we record each stock movement – which is date and time stamped and logged to the operator – we build manifests per article being picked, be it a box, tote, cage, pallet etc. In doing so not only do we get a delivery manifest we have an article manifest which is ideal to satisfy the demands of Good Faith Receiving.
Good Faith Receiving technology is suitable for all suppliers.
Our customers rely on our robust, modular and patented In-DEX WMS Warehouse Management Software suite to run efficient and revenue enhancing operations. They have direct access to an industry and technology expert pool spanning over 25 years operating across multiple business sectors.