Foodstuffs North Island boosts support for small and medium suppliers
Foodstuffs North Island is introducing a package of practical measures to support small and medium-sized New Zealand suppliers as cost pressures continue to build.
The changes aim to make it easier to do business with the co-operative, including faster payments for smaller suppliers, quicker decisions on fuel-related cost requests, and more support to help suppliers grow through workshops and programmes such as New World Emerge.
Chief Executive Chris Quin says the focus is on supporting suppliers through a challenging period while managing impacts on customers.
“Our suppliers are a critical part of keeping food on shelves across New Zealand,” he says.
“Many are local businesses dealing with rising costs, particularly for fuel, packaging and production. These steps are about easing some of that pressure and making it simpler to work with us.”
Faster payments for smaller suppliers
Foodstuffs North Island will pay its smaller suppliers 10 days earlier, moving payments to the 20th of the month. In many cases, this will enable suppliers to pay their own suppliers earlier, helping ease cashflow pressure.
“For smaller suppliers, cashflow is critical,” Quin says. “Paying them sooner gives them more room to operate and invest in their business.”
Faster response to fuel pressures
Rising fuel prices are continuing to push costs through the food system, from farms and factories through to trucks, warehouses and supermarkets.
Foodstuffs says it is working closely with suppliers to respond in a way that keeps groceries as affordable as possible, supports suppliers facing fuel-driven cost increases, and avoids locking in short-term inflation.
Where a supplier requests a fuel-driven cost increase, these will be prioritised, with reviews expected in around four to six weeks, instead of up to 12.
“We’re working through each request with suppliers based on their individual situation,” Quin says.
“At the same time, we need to be careful not to lock in temporary inflation. Where changes are agreed, they’re intended to be temporary, with the expectation that suppliers will remove the adjustments once fuel prices ease by an agreed amount.”
Quin says Foodstuffs is also managing the same pressures.
“We use a lot of diesel to keep food moving, and those costs are adding up quickly. Our job is to balance keeping prices as low as possible for customers while supporting suppliers so they can keep producing.”
Backing future suppliers through New World Emerge
Foodstuffs continues to support emerging suppliers through New World Emerge. Now in its fifth year, winners are supported by industry leaders and Foodstuffs mentors and get to have their products ranged in New World stores across the country.
“Programmes like New World Emerge are about giving new suppliers a foot in the door and helping them build from there,” says Quin.
Supplier workshops to build capability
New workshops will help small and medium suppliers understand how to work with the co-op, build long-term partnerships, and take advantage of opportunities to grow their business.
Quin says it’s the largest group of suppliers by number and with many being New Zealand businesses, backing them is important.
“These suppliers are a big part of what keeps our shelves local and full of innovative products that our customers love,” he says.
“Working with the co-ops can be complex for newcomers or small suppliers, but the opportunities are enormous. This is about leaning into that and giving suppliers the best shot at success.”
The sessions will cover the basics, from pricing and promotions, through to supply chain and store execution and were shaped by feedback from suppliers.
“If we can make it easier for suppliers to grow, that’s good for them, good for our locally owned stores, and good for our customers,” Quin says.