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Trading Partner News - Woolworths wowlink

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<strong>Trading</strong> <strong>Partner</strong> <strong>News</strong>Published by <strong>Woolworths</strong> Supermarkets to support our Trade <strong>Partner</strong>s www.<strong>wowlink</strong>.com.auIn this issue >Traders Update tours Australia01 Introduction 02 Customer Engagement 03 Longlife 04 Fresh 05 Logistics06 Supermarket Support 07 Marketing 08 CommunityMay 2009Issue31Traders’update09


01 AIntroductionword from Greg Foran02 Qantas,Customer Engagement<strong>Woolworths</strong> alliance - taking off soonWelcome to the second edition of the <strong>Trading</strong> <strong>Partner</strong> <strong>News</strong>letterfor 2009 and thank you to our suppliers who joined us at ourrecent Traders Update Roadshows.As we approach the end this financial year we know that manybusinesses have been doing it tough. While many people mayduck for cover in rugged economic times, our commitment toyou, our trade partners, is that <strong>Woolworths</strong> will continue to workto the plans we outlined at the Roadshows.In good times and in bad times, <strong>Woolworths</strong> has remainedfocussed on the basics of retailing. This will not change and wewill continue to strive to provide our customers the best service,the best products and the best value.<strong>Woolworths</strong> and Qantas have joinedforces to launch an exiting new alliancethat provides our registered EverydayRewards members the opportunity toearn Qantas Frequent Flyer Points whenthey shop at <strong>Woolworths</strong> Supermarkets.The alliance will launch in Supermarketsmid 2009, and will then be introducedto other <strong>Woolworths</strong>’ group stores.Customers will need to be a registeredEveryday Rewards member and eitherjoin Qantas Frequent Flyer or link anexisting Qantas Frequent Flyer accountto earn points at <strong>Woolworths</strong>.Later in the year <strong>Woolworths</strong> will bringnew promotional opportunities to tradepartners, details on the alliance and howto take part will be available on <strong>wowlink</strong>closer to launch.(The <strong>Woolworths</strong> Everyday Rewardsprogram does not operate in Tasmania).To achieve this, we will continue to invest in our stores with newopenings and the aggressive rollout of our new format. Our newand refurbished stores continue to deliver strong results for ourbusiness and for our trade partners.The strong momentum in our business is testament to the hardwork of the entire Woolies team, but we also recognise that our continuing success is a combined effort from the extended‘<strong>Woolworths</strong> family’ that very much includes our trading partners.We have worked with most of our trade partners for decades, often through previous economic downturns, and believe theserelationships are built on the highest standards of integrity and honesty. On behalf of our shareholders we will continue topositively support both our suppliers and our customers through the changing economic circumstances.As an example, amidst the uncertainty one thing is definite – next quarter will be just as busy as the last! In coming months, wewill launch initiatives designed to improve our service and to provide greater value to our customers. As just one example, ouralliance partnership with Qantas will reward our customers from check-out to check-in through our Everyday Rewards loyaltyprogram.On behalf of the Woolies team, I can assure you we look forward to working with you for decades more to come. If you would liketo make contact with me or provide feedback on any part of our business please email me: GForan@woolworths.com.auGreg ForanDirector – Supermarkets, Liquor and Petrol.We have always publicly acknowledgedthat to be a successful retailer we needsuccessful suppliers who prosper withus, and we will continue to do the rightthing by our suppliers through thischallenging economic environment.<strong>Woolworths</strong> will therefore continueto trade with our suppliers on therelationship principles that currentlyapply, and that result in the successfultrading outcomes we each enjoy. Wedo not intend to initiate any generalprogram of seeking trading termsincreases. Similarly we will continue ourpolicy of requesting, (for administrativepurposes), only a minimum of fourweeks notice from suppliers of intendedprice increases on packaged products[shorter notice may apply by negotiationto products affected by tax, excise,legislative or unforeseen circumstances.Greg Foran (far right) with (L-R) John Innes Area Manager,The Hon Wayne Swan MP Federal Treasurer,Sue Honan Store Manager Sandgate <strong>Woolworths</strong> andJill Skinner Local CWA representativeChanges in trading arrangementsMarket price driven fresh foods haveseparate arrangements].As always, we must remain competitivein the marketplace, however, and wewill also continue to work with oursuppliers as we do today to ensure ourtrading arrangements do not result in anycommercial disadvantage.03 PlanningAs we approach the end of the 2009financial year, the Longlife team wouldlike to thank all of our Trade <strong>Partner</strong>sfor their tremendous support in whathas been a successful year in a verychallenging environment.With that said, our focus should now turnto planning for success in 2010.Promotional PlanningPromotional planning is well underway forFY2010. All Buying teams will have nowengaged you in discussions to ensurestrong programs are in place to driveprofitable sales for both of us. However,the finalisation and loading of these plansis now urgent to ensure we both start theyear strongly. If your plans are yet to beLonglifefor (FY) 2010finalised please contact your respectivebuying team as soon as possible.Category Development ScheduleIn the first quarter of FY2010, Longlifewill publish our Category DevelopmentSchedule for 2010 on the vendor websitewww.<strong>wowlink</strong>.com.au. Through yourfeedback, and our focus on continuouslyimproving the customer shoppingexperience, we will now endeavour toconduct two range reviews per year onthe majority of the Grocery categories. Theform of this new annual review schedulewill consist of a major review and a minorreview. A minor review will normally belimited to major product launches and thereview of layouts.<strong>Woolworths</strong> National ConferenceA feature of our annual planning forsuccess is the <strong>Woolworths</strong> NationalConference. The Conference enablesyou, our Trade <strong>Partner</strong>s, our operationsteam and support office staff to celebrateour past successes and plan the futuretogether in one location. This year’sConference will be held in Melbournefrom 14 to 16 September. Packages forthe Conference will be released in thenear future. We encourage all of our Trade<strong>Partner</strong>s to evaluate the Conferencepackages and the opportunities that thisevent will provide.<strong>Trading</strong> <strong>Partner</strong> <strong>News</strong> 3


FeatureTraders Update 2009The annual <strong>Woolworths</strong> TradersUpdate Roadshow recently made itsway through 11 cities in five weekspresenting to 2,000 Trade <strong>Partner</strong>s andover 3,000 <strong>Woolworths</strong> managers. Thisyear’s theme was ‘Working to Plan’:communicating <strong>Woolworths</strong>’ progressof our operational plan and the focusfor the next six to 12 months.Greg Foran and General Managersfrom each department of theSupermarkets group began theirtour in Brisbane on Wednesday 5March and concluded in Perth onThursday 2 April. We thank everyonefor their attendance – particularlyin Melbourne where Trade <strong>Partner</strong>attendance almost doubledcompared to 2008.Feedback from the presentation hasbeen very positive. We hope youenjoyed it and hope that it gaveyou confidence in the plans andinvestment <strong>Woolworths</strong> has inplace to grow our businesses into thefuture.A condensed version of theTraders Update presentation isnow available to download fromwww.<strong>wowlink</strong>.com.au, and coverssuch topics as:• Half yearly results and nationalsafety results.• Quality Assurance and Recalls /Withdrawals, including reasons forthe 24% increase in Withdrawalssince FY07.• Produce crates features.• New brand roll out on trucksand signage.• In-store Demonstrations and thedirect marketing opportunity thispresents to our Trade <strong>Partner</strong>s.• Comparative Unit Pricing update.• Everyday Rewards andQantas alliance.• Animal welfare issues andcommunity initiatives.• Power consumption reduction trials.Luke Dunkerley General Manager Marketingdemonstrates an update to enviro bagsScott Eames and Alaina Gorhamfrom <strong>Woolworths</strong> Trade RelationsColin Hudgson <strong>Woolworths</strong> Business Managerand Sam Manujith from Houston’s FarmJames Aylen General Manager Longliferevs up the audienceAttendees catching up with <strong>Trading</strong> <strong>Partner</strong> <strong>News</strong>(L-R) Colin Hudgson and Campbell Stott <strong>Woolworths</strong> Business Managers with Michael Antico andJeffery Jackson from Moraitis Group, joined by Jill Whitehouse <strong>Woolworths</strong> Business Manager(L-R) Kate Byrne from Universal Pictures, Darren Weir <strong>Woolworths</strong> SeniorBusiness Manager and Neil Warburton from Alberto CulverGreg Foran on stage in Sydney(L-R) Wayne Mackay-Smith from Unilever, Jennifer Rogers <strong>Woolworths</strong> BusinessManager, Natalie Cassar and Adele Whitehorn from Unilever4 <strong>Trading</strong> <strong>Partner</strong> <strong>News</strong><strong>Trading</strong> <strong>Partner</strong> <strong>News</strong> 5


04 WhenFreshthe Director of <strong>Woolworths</strong>Supermarkets pulls in the driveway...<strong>Woolworths</strong> Managers and Buyersdedicate time to visiting our farmersand growers to gain insights into theupcoming season and to develop planstogether. In January visits were made toa number of produce growers along theNew South Wales/Victorian border, andto several beef producers in the NewEngland Region.The <strong>Woolworths</strong> group consisted ofDirector Greg Foran, Michael BatyckiGeneral Manager Fresh Food, DarrenWeir Senior Business Manager Produce,Campbell Stott and Malcolm McLean,<strong>Woolworths</strong> Business Managers.Robinvale grape growers Joe Laneri, PhillipNatale, Charlie Camera and Mario Romeowere busy harvesting Menindee SeedlessGrapes and the quality was lookingfantastic. With each grower, promotionalplans were set in place to enable the largecrop of grapes to be moved throughstores. As the mercury hit 44 degrees,standing under the vines was coolestplace to be!Around the corner in Happy Vale, RussellLamattina, one of <strong>Woolworths</strong>’ biggestcarrot growers, amazed the group withthe scale of his carrot packing shed. TheLamattina family pick fresh carrots fromthe field and then wash, grade and packthem for <strong>Woolworths</strong> stores.In Swan Hill stone fruit was on the menu.Ray Montague, from Montague Fresh, washarvesting plums and peaches, and oneof Swan Hill’s biggest nectarine growers,Tony Siciliano, led a tour of his pack shed.The quality of nectarines was also lookinggreat, and we planned our promotions tocoincide with the flushes of stone fruit.The sheep and cattle grazing regionsaround Tamworth are home to<strong>Woolworths</strong> suppliers Cargill Beef, KillaraFeedlot, Baiada poultry and individualbeef suppliers such as Ian Swain. On thisvisit, Greg Foran and Michael Batycki werejoined by Roger Steele Senior BusinessManager Meat, Brett Thompson BusinessManager, Jock Dalzell Rebuyer and DennisStrachan Assistant Business Manager.At <strong>Woolworths</strong>, working closely andcommunicating with growers and farmersis a paramount to our joint success.Russell Lamattina from A&J Lamattina and Sonswith Michael BatyckiLarge scale operations at A&J Lamattina and SonsTouring Cargills plant (L-R) Brett Thompson, Michael Batycki, Greg Foranwith Bernard Smith and Andrew Macpherson from CargillDiscussions at Grape Exchange (clockwise from left) Campbell Stott, Malcolm McLean, Darren Weir,Elliot Jones, Joe Lanteri from Grape Exchange, Greg Foran, and Mark Conroy from Grape ExchangePhillip Natale from P&N Natale withGreg Foran and Darren Weir(L-R) Andrew Talbot from Elders, Greg Foran, Jim Guilfoyle and Hamish Browning from EldersHamish Browning from Elders with Michael Batycki, Greg Foran and Brett ThompsonRay Montague from Montague Freshwith Greg Foran in the stone fruit orchardGreg Foran with Mario Romeo from United ProduceGreg Foran and Brett Thompson withIan Swain - beef supplier6 <strong>Trading</strong> <strong>Partner</strong> <strong>News</strong><strong>Trading</strong> <strong>Partner</strong> <strong>News</strong> 7


04 NotFresh05Logisticschicken about talking turkey Pallet labelling - what are the issues?Would you like training?<strong>Woolworths</strong> Supermarkets and InghamEnterprises have a long standing relationshipdating back to July 1961, when Inghamsdelivered their first frozen chicken to a<strong>Woolworths</strong> store. 48 years later, Inghams hadthe confidence to develop the fresh turkeycategory with the support of <strong>Woolworths</strong>.Current turkey consumption in Australia is 1.1kgper person per year, compared with chicken at38kg per person per year. The potential for turkeyas a key protein source in the Australian marketwas recognised by <strong>Woolworths</strong> and Inghams.A selection of fresh retail turkey cuts ideal foreveryday use was developed, as turkey is a richsource of protein and can be eaten all yearround - not just Christmas. To ensure theversatility of turkey is communicated thepackaging is colourful, informative and customerfriendly depicting serving suggestions andalso cooking recipes.The range of 16 new turkey products waslaunched into 30 trial stores in New South Wales.A launch support package included pink ‘New’ticketing on shelf, wobblers, recipe leaflets, floormedia, in-store demonstrations, external ‘ad shell’advertisements in shopping centres, local andstate press advertisements and PR exposure.Correct labelling (including the useof barcodes) is indispensable toensure that your products are movedthrough the <strong>Woolworths</strong> logisticsnetwork in the most accurate, safe andefficient manner.A pallet entering a <strong>Woolworths</strong>Distribution Centre (DC) must have apallet label on each fork-entry side, A6in size (minimum) and positioned onthe right-hand side, 50mm from theedge and between 400mm to 800mmhigh. Where there is a single producton the pallet and stretch-wrap is usedfor stabilisation, the pallet label must beplaced on outside of the stretch wrap. Ifno stretch-wrap is used then the palletlabel should be placed on the carton.The Serial Shipping Container Code(SSCC) barcode that appears on thepallet label must be unique per palletand must not be reused for 12 months.It provides <strong>Woolworths</strong> the ability toquickly receive and subsequently trackthe pallet throughout the DC. ManyTrade <strong>Partner</strong>s are also using the SSCCbarcode for tracking the pallet withintheir own supply chain.Stock arriving without a pallet label orincorrectly labelled may be rejected. Ifthe position of the label is incorrect, DCstaff may be put at risk as the forkliftdriver may not be able to safely scanthe label within the forklift cabin. Weappreciate your support in the driveto improve safety in the movement ofstock throughout the Logistics networkand at <strong>Woolworths</strong> stores.The Vendor Capability team isdeveloping a training video on palletlabelling which will be available fromJune 2009. Trade <strong>Partner</strong>s will beX = 50mmSample of correct SSCC labelencouraged to incorporate this video inthe training of their staff who preparestock for delivery to <strong>Woolworths</strong>.The detailed requirements for palletlabelling is available for downloadfrom the <strong>Woolworths</strong> website -www.<strong>wowlink</strong>.com.au Should you haveany queries regarding pallet labelling orthe training video, Vendor Capability canbe contacted on 02 8885 3361 or email:vendorcapability@woolworths.com.auThe range includes products such as TurkeyBreast Steaks, Tenderloins, Drumsticks, Wings,Mince, Sausages, Stir Fry, Diced, BBQ Thigh Steaks,Leg Roasts, Schnitzels, Meatloaf and a Semi DebonedWhole Turkey Roast.The launch support package included ‘ad shell’ advertisementsAfter a successful trial, the offer expanded toQueensland and Victoria, followed by all fullrollout to South Australia, Western Australia andthe Northern Territory. By May 2009 the phasednational roll out was complete.H = 600mmh < 800mmThe launch of Turkey as a new category is anexcellent example of how <strong>Woolworths</strong> andInghams have worked together to growboth businesses.h > 400mm16 new turkey products launched in the first half of 2009 Place label between minimum 400mm (H) and maximum of 800mm (H), and MUST be on the right , 50mm from the side8 <strong>Trading</strong> <strong>Partner</strong> <strong>News</strong> <strong>Trading</strong> <strong>Partner</strong> <strong>News</strong> 9


WC5722_FFKCG_Poster_WWSW_FA.indd 123/1/09 5:27:30 PM06 RealiseSupermarket Supportthe benefits of B2B through eBusiness“new options - more capabilities”07 <strong>Woolworths</strong>MarketingFresh Food Kids -evolution and developmentB2B is the electronic exchange ofinformation between two businessentities. The potential benefits of a B2Brelationship with <strong>Woolworths</strong> are:• Faster, more efficient and moreaccurate procurement.• Improved Service Levelsand Compliance.• Improved overall Supply Chainvisibility and efficiency.• Collaborative business process.The <strong>Woolworths</strong> B2B system allowsyou to do business with <strong>Woolworths</strong>electronically. We have two B2B options;webforms, a free of cost web browserbased application or Electronic DataInterchange (EDI), ideal for those Trade<strong>Partner</strong>s looking to fully integrate intotheir in-house system.As presented at Traders UpdateRoadshow, the <strong>Woolworths</strong> eBusinessTeam continue to work on growingthe number of B2B relationships withTrade <strong>Partner</strong>s. For Trade <strong>Partner</strong>snot already connected, we havecommenced a program to retire faxand email as a means of doing businesswith <strong>Woolworths</strong> which will see alltrading relationships B2B transferred byDecember 2009.To date we have in excess of 1,000trading relationship enabled.What to expect in 2009If you are not already B2B enabled with<strong>Woolworths</strong> please expect contactfrom our eBusiness Team in the comingmonths to assist with your transition.For those Trade <strong>Partner</strong>s wishing toknow more about B2B with <strong>Woolworths</strong>please visit www.<strong>wowlink</strong>.com.au (seethe eBusiness Topic Centre) or contactour eBusiness Team by phone on(02) 8885 3100 or by email:ebusiness@woolworths.com.auWhy not register for B2B now?Trade <strong>Partner</strong>s wishing to come on-boardwith B2B now can register online atwww.<strong>wowlink</strong>.com.au Navigate to:eBusiness Topic Centre > WebformsTopic Centre > Getting B2B Connected >Webforms Online Registration<strong>wowlink</strong> FREE forall Trade <strong>Partner</strong>swww.<strong>wowlink</strong>.com.au<strong>wowlink</strong> reporting is now available freeto all Trade <strong>Partner</strong>s. <strong>wowlink</strong> offersa range of online services to assist inplanning, execution and analysis ofyour <strong>Woolworths</strong> business. <strong>wowlink</strong>provides the best opportunity for yourstock to reach the <strong>Woolworths</strong> stores.Any Trade <strong>Partner</strong> doing business with<strong>Woolworths</strong> can register for <strong>wowlink</strong>.To register for <strong>wowlink</strong> go towww. <strong>wowlink</strong>.com.auEmail: <strong>wowlink</strong>_admin@woolworths.com.auPhone: (02) 8885 4488The Fresh Food Kids campaign was launched by <strong>Woolworths</strong>in September 2007 to make fresh fruit and vegetables funand interactive for children. The campaign began with threetelevision commercials, Point of Sale and an interactive website.Eighteen months on, the Fresh Food Kids brand has evolvedfrom showing kids that eating Fresh Food can be fun, toencouraging the holistic health and wellbeing of children,by reaching parents and carers with healthy eating adviceand inspiration.The Fresh Food Kids brand has expanded to now incorporateFresh Food Kids Community Grants, which is currently in itssecond year and Fresh Food Kids Hospital Appeal, previouslycalled Fresh Future. The Fresh Food Kids brand is the perfectplatform to re-brand the Hospital Appeal charity as it is focusedon children and their health and wellbeing, similarly with theextension of the brand into Fresh Food Kids Commnity Grantswhich promotes a healthy active lifestyle for primary schoolagedchildren.The Fresh Food Kids Community Grant campaign was extremelypopular in 2009 awarding 1,200 grants totalling $2 million tocommunity groups all around Australia. The 2009 program whichjust recently closed was once again hugely popular, seeing11,867 applications. We will be offering cash grants of up to$5,000 to individual Community Groups, and will award a total of$3 million to community groups around the country.Apply Nowfor a <strong>Woolworths</strong>Community Grantof up to $5,000Apply at woolworths.com.auApplications close 6th April, 2009Are you the 2009 Supplier of the Year?The ongoing evolution and growth of this brand demonstrates<strong>Woolworths</strong>’ commitment to Australia’s health and wellbeing ofthe younger generation.Call to action poster displayed in February 2009Thank you to all our suppliers whohave registered and who are now inthe running to be named <strong>Woolworths</strong>Supplier of the Year 2009. This year58 new companies have joined thecompetition, which is our largest increasesince the program began in 2001.Supplier of the Year is hosted on the new<strong>wowlink</strong> website, we appreciate youtaking the time to learn the new <strong>wowlink</strong>system and we thank you for updatingyour company profile, username andcontacts. Please take the time to keepyour details up to date and this willensure you do not miss out on futureemail alerts or news.The first Quarter results of Supplier ofthe Year are now published on <strong>wowlink</strong>(www.<strong>wowlink</strong>.com.au), you must beregistered for <strong>wowlink</strong> and subscribed toThe Quarters will be scored and published as per the timeline below:Quarter Period that scores are based on Results released on <strong>wowlink</strong>Supplier of the Year to access the results.Please contact your company’s <strong>wowlink</strong>Local Administrator if you require access.Quarter 1 December 2008 - February 2009 Week commencing 20 April 2009Quarter 2 March 2009 - May 2009 Week commencing 13 July 2009Quarter 3 June 2009 - August 2009 Week commencing 12 October 2009Quarter 4 September 2009 - November 2009 Week commencing 7 December 2009If you are interested in participating in Supplier of the Year 2010, please email supplieroftheyear@woolworths.com.au and you willreceive an email alert when the 2010 program opens in February 2010.10 <strong>Trading</strong> <strong>Partner</strong> <strong>News</strong>Fresh Food Grant applications now openEvery year <strong>Woolworths</strong> offers theopportunity of a grant of $100,000 toan Australian fresh food producer whobest demonstrates commercially viableand environmentally sustainable freshfood initiatives.With funds from the inaugural Grant,Tasmanian based company Houston’sFarm developed a carbon footprintingmodel to determine their environmentalimpact from seed to supermarket. Themodel now has national significance inthe vegetable industry.Last year’s recipient Moraitis injected theGrant funds into their BioChar project – ascientific study using a type of charcoal toincrease soil conditioning and sequestercarbon. The project gained momentumafter winning the Fresh Food Grant, andcurrent lab findings are now being testedat one of South Australia’s largest farms.The Application Form is available online,visit ww.<strong>wowlink</strong>.com.au for all thedetails. Applications close Friday 28August 2009.<strong>Trading</strong> <strong>Partner</strong> <strong>News</strong> 11


08 BackingCommunityOur Farmers<strong>Woolworths</strong>BackingourFarmers 09the road to recoveryThe CWA are distributing funds tofarming families and rural communitiesin drought affected areas. In addition toproviding Emergency Assistance Grantsfunding to farmers for emergencybills and daily expenses, this yearsome of the $7 million was given assupport for projects that local ruralcommunities haven’t had the resourcesto undertake themselves.The remaining third of the moneywas donated to LandCare to supportsustainable farming projects acrossthe country.Since our partnership with CWA andLandCare started in 2007, the Backingour Farmers Days have raised$17,567,992 for drought affectedfarmers and rural communities.Every shopper who made a purchase onFriday 20 February at a <strong>Woolworths</strong> orSafeway store contributed to the$7,067,992 raised nationally for the‘Backing our Farmers Day’.Country Women’s Association NationalPresident, Mrs Lesley Young wasoverwhelmed at the supportAustralians have provided to droughtstricken farming families and ruralcommunities in need.“If there’s one positive thing I can seethat’s come out of the bushfires andfloods, it’s a reminder to Australia’s urbanpopulation that rural communities arevery important to this country. They’renot just pretty towns to visit on theweekend. The people living in rural areasare real people with jobs and families.”The $7 million profit from <strong>Woolworths</strong>and Safeway stores nationally hasbeen given to the Country Women’sAssociation (CWA) and LandCare tosupport rural communities.Senator Mark Furner with staff members Leah and Tyrone at theAlbany Creek <strong>Woolworths</strong> store in QLD<strong>Trading</strong> <strong>Partner</strong> <strong>News</strong> published by <strong>Woolworths</strong> Limited ACN 000 014 6751 <strong>Woolworths</strong> Way, Bella Vista NSW 2153.If you would like to make a contribution please contactScott Eames, phone: 02 8885 2856 fax: 02 8888 2856 email: seames@woolworths.com.auwww.<strong>wowlink</strong>.com.au

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