These letters are to provide you, our suppliers, with some of our current practices, procedures, requirements and general specifications with respect to shipment, delivery, billing and allowances.
Best Practice Billing Letter
- Product Placement Letter
Safeway's Mandatory Temperature Receiving Requirements HACCP
- Hazard Analysis and Critical Control Point Policy
This information is provided for Safeway's Refrigerated & Frozen suppliers to comply with the Food & Drug Administration, Hazard Analysis and Critical Control Point (HACCP) Policy.
Safeway's Letter to Refrigerated & Frozen Suppliers
Mandatory Temperature Receiving Requirements
Bioterrorism Preparedness Response Act of 2002
While several sections of the Act have been enforced for some time, Safeway is in the process of ensuring compliance with the required federal regulation. This information will provide you with measures Safeway requires of its vendors to ensure compliance with Federal regulations.
Safeway vendor requirements letter Click here
List of Safeway item groups affected Click here
C-O-O-L Country of Origin Labeling Letter(s)
These letters provide to you, our suppliers, the
specific steps that must be taken to assist Safeway in complying
with the Mandatory Country of Origin Labeling for Seafood laws.
We appreciate your assistance and look forward to our continuing
Country of Origin Labeling for Seafood Letter (04/12/04).
Seafood Vendor Requirements (04/15/04).
Safeway’s Policy on Store "Test"
Suppliers may, on occasion, be permitted by Safeway
to conduct marketing tests within our stores. Such testing is subject
to the following rules and procedures:
- The manufacturer’s
"Safeway specific" representative must complete a "Request for
Category Test" (the "Test Request") and return that form at least
sixty days before commencement of the proposed test.
- If the proposed test meets Safeway’s
requirements* and is otherwise acceptable to Safeway, the Test
Request will be forwarded to the appropriate Safeway officials
for their approval.
- At any point in this process, Safeway
may request modification, including expansion or limitation, of
the proposed test, or may condition approval of the proposed test
upon such modification.
- If the proposed test is approved by Safeway,
the VP of SCOP will set up the implementation and tracking of
the proposed test with supplier’s representative.
- At the conclusion of the test, a determination
will be made by Safeway, in the exercise of its sole discretion,
as to the implications of test results for Safeway’s business
processes, and whether such results indicate that the product(s)
tested represents a business opportunity that Safeway should pursue.
All category tests that are "externally" generated must provide
some defined significant value to Safeway or to the categories for
which they apply. Safeway Category Optimization Process (SCOP) contact:
|Vice President, SCOP
Merchandising Systems & Strategies
Product Recall or Withdrawal
Please review our CCG, Section IX, for our policy
regarding Product Recall or Withdrawal.
Effective June 1, 2003, Safeway established
a point of contact for vendors to use when it becomes necessary
to recall or withdraw a product from the market. To report all recalls
or withdrawals, please e-mail or phone the Product Defect hotline:
Your product action information must include:
- Type of action -withdrawal or recall with classification
- Manufacturer's name
- Product name as it appears on the consumer package
- Package size
- Code(s) or date(s) and location on package
- Reason for the withdrawal/recall
- Where the product was distributed within Safeway companies
(if known) .
- Action to be taken (there are only three options):
- Destroy at store level,
- Hold for vendor pick-up, or
- Return to Safeway Product Recovery Center to be returned
Corporate Reclamation Policy
Safeway’s Corporate Reclamation procedure, as described herein, is based on the 1990 GMA/FMI "Joint Industry Report on Product Reclamation Centers." We endorse the voluntary guidelines contained in the report and have adopted, for the purpose of our day-to-day operations, the damage-responsibility presumptions enunciated in the Report.
In addition, we engage in substantial efforts to reduce retailer-responsible damage.
We follow the Joint Industry Report's approach of identifying the three main cost components for which a distributor of goods is entitled to fair reimbursement, over and above product cost (list price). Thus, suppliers of returned products will, in addition to the list price of returned product, be responsible for pre-damage direct costs, post-damage handling costs, and reclamation center costs.
Pre-damage costs are those costs we incur from the point Safeway receives the product to the time it reaches the store. Such costs include warehouse handling and storage, transportation to the store and shelf stocking. We will consider manufacturer supplied values, when reasonably derived. Otherwise, we incorporate a figure for each item based upon a DPP or ABC model which is currently 6% of cost.
Post-damage handling costs are those expenses to remove the unsalable goods from the shelf and transport them to the reclamation facility. The average value derived by the Joint Industry Report, 11.1 cents, is utilized.
Reclamation Center Costs (RCC) are those actual expenses we incur to operate an unsalables receiving/sorting/disposition facility, or to have one operated for us. We use our actual per item expense paid to the reclamation center operator during each accounting period to derive this figure. For our centers in the U.S., the average value is 12.25 cents per item.
Product Recalls and Withdrawals will be charged a flat $0.84 per unit due to additional labor and paperwork involved.
In addition to this base reclamation center cost per item are disposition fees as follows:
|Sort / Hold (Subject to 30 day limit)
Safeway strongly encourages suppliers to be directly involved with examining product returned to the centers. We find that suppliers reap the greatest rewards when they inspect product first hand.
Safeway will have no responsibility for transporting or reclamation of any product that, to Safeway’s knowledge, (i) is considered a hazardous material or hazardous waste under EPA or state regulations, (ii) is considered as Hazardous by DOT (other than ORM-D Consumer Commodity or Limited Quantity) (collectively, “Hazardous Materials”), (iii) is a chemical-containing product, or, (iv) within the state of California, is a medication. For purposes hereof, a “chemical containing product” shall include any product not intended for human consumption that contains or consists of a powder, gel, paste or liquid, and includes aerosols, pesticides, products used for lawn and garden, health and beauty, or household cleaning. Safeway will manage products that are categorized as such at store level using a third party licensed in proper handling and disposing of these products. Hazardous Materials handling will be charged a flat $0.84 per unit. Suppliers will not have the option to reclaim this product.
Our stores, manufacturing facilities, distribution centers and offices participate in a number of waste reduction programs that benefit local communities and the environment. In order to encourage resource conservation and waste reclamation, we have recently adjusted our fee for destruction of goods to more appropriately reflect actual costs, and have, through efficiencies, been able to lower our fee for donation of damaged goods. We encourage all suppliers to pursue similar efforts.
Payments due to Safeway under this policy are collected, where possible, via deduction from invoices. We offer payment via draft as an option for discontinued suppliers.
While it is not practical for us to identify product for special handling, each division schedules its regular damaged product pick-ups. Safeway reserves the right, in its sole discretion, to dispose of product that is not picked-up in a timely manner.
If you have further questions, please contact firstname.lastname@example.org
Please complete the Reclamation Disposition Agreement by selecting the link below.
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