a. Terms of Payment
b. Initial Order Payment Terms
c. Invoices
d. Supplier Support Site
4. FOOD SAFETY...........................................................................................................................7
a. Audit Requirements
b. Recall Plan
c. HACCP Plan/Process Flow Chart
d. Letter of Guarantee
e. COI – Insurance Certificates
f. Disclosure of Supply Chain Information
g. Organic and Kosher Certification
h. Supplier Specifications
i. Confidentiality
5. SUPPLIER CODE OF CONDUCT...................................................................................................8
a. Legal Compliance
b. Human Rights
c. Safe and Healthy Workspace
d. Food Safety, Quality and Regulatory Compliance
e. Sustainability and Environment
f. Ethical Business Practices
g. Confidentiality and Privacy
h. Speaking Up, No Retaliation
i. Verification of Supplier Compliance
6. PRICING & DATA GOVERNANCE................................................................................................11
a. MANTIS
b. Supplier Contact Management
c. Data Integrity and Accuracy
d. UPC, Size, Pack, Label and Nutritional Changes
e. PO Confirmations
f. Supplier Cost Change Policy
g. Supplier Cost Change Calendar
h. Price Protection
i. Electronic Data Interchange (EDI)
j. Customer Investment Commitments
k. Promotional Discounts
l. Customer Programming and Financial Services
7. NEW PRODUCTS ......................................................................................................................14
a. New Item Launch Plan
b. New Product Samples
c. Six Month Guarantee Sales Agreement for New Products
d. Opening Orders and New Retailer Placements
e. Temporary Slot Fee
f. Supplier Negotiated Purchase Orders
g. Supplier/Broker Negotiated Customer Exclusives
h. Vendor Managed Inventory (VMI)
i. Fair Share Billing
8. INVENTORY & DISTRIBUTION ...................................................................................................15
a. Unacceptable Products
b. Product Loss Claims (PLCs) and Unsellable Products
c. Customer Discontinued Products
d. Spoils Allowance
e. Split/Broken Cases
f. Code Dates
g. Vendor Storage Fees
h. GS1-128 Compliance
i. Recalls and Product Withdrawals
9. SHIPPING & RECEIVING PRODUCT ............................................................................................19
a. Mis-Ships/Shortages/Over-Ships
b. Supplier Delivery
c. Logistics Deliveries
d. Late/Unscheduled Loads
e. GFI Unloading Services
f. FOB Pickup/Backhaul
g. Detention Fee
h. Rescheduling Fee
i. Supplier Performance Levels
j. Inventory Transfers and Balancing
10. GFI MARKETING PROGRAMS ....................................................................................................23
a. New Item Launch Plan
b. Promotional Planning and Expectations
c. Marketing and Advertising
d. Depletion Reports
11. PRESS RELEASE POLICY.............................................................................................................23
1. INTRODUCTION
MISSION: TOGETHER WE CREATE A BRIDGE BETWEEN PRODUCERS, CUSTOMERS, AND CONSUMERS BRINGING QUALITY PRODUCTS TO MARKET.
At Gourmet Foods International (GFI) we strive to deliver high quality products at the best possible cost to our customers. In today’s competitive environment, freshness, quality, and variety are crucial to optimize the customer experience. GFI has invested in equipment, technology, people, and real estate to bring your products to market in the absolute best version of themselves possible. Collapsing the supply chain is a complex and expensive undertaking. The assets we possess are at your disposal to help market and transport the products you have worked so hard to produce. The basis of this document is to clearly communicate how GFI and our Suppliers can work together. GFI provides many services for our Suppliers. Our comprehensive marketing options facilitate growth and market penetration for both mature and emerging product line ups.
Transparent and informed Supplier partnerships are crucial for us to succeed on this objective. This document outlines the mutual expectations and commitments needed to maximize supplier, distributor, and customer profits and to deliver the best experience possible
GFI understands the nature of our business will require circumstances outside this document. Please work with GFI’s Purchasing Team to request special conditions if your products require different considerations
The policies outlined and described in this document supersede any terms previously submitted by Supplier(s) to GFI unless special exceptions have been accepted in writing by GFI.
General Inquiries info@gfifoods.com
VP Purchasing
Category Managers
New Item Review
Marketing Manager
TODD DRUHOT tdruhot@gfifoods.com
ANGEL HOLCOMB aholcomb@gfifoods.com
TODD TREADWELL ttreadwell@gfifoods.com
https://gfifoods.com/new-product-review
KIM CHESSER kchesser@gfifoods.com
MANTIS Supplier Portal https://MANTIS.gfifoods.com/enable2020/
Delivery Appointment Scheduling www.NCRpowertraffic.com
Invoices
payables@gfifoods.com GFI Accounts Payable 3370 Panthersville Rd Decatur, GA 30034
Product Recalls
Information must be sent by email only qualitycontrol@gfifoods.com
Supplier Support Site - Zendesk https://gourmetfoods.zendesk.com/hc/en-us
a.
Terms of Payment
GFI’s standard payment terms are 2%, 10 days or Net 30 from the date GFI takes possession of Supplier’s product and verifies Proof of Delivery at the final invoice destination point. Initial invoices will be paid 60 days after opening POs to GFI are received. GFI will reconcile applicable deductions and financial commitments made by Supplier with amounts due to Supplier.
GFI will deduct from payment all deductions detailed herein including, but not limited to, promotional allowances, marketing commitments, spoilage fees, non-compliance charges, delivery fees, etc. GFI may offset any amounts due from Supplier against any open invoice. Detailed backup for the deductions can be obtained by submitting a ticket on GFI’s Supplier Support Site. If Supplier wishes to dispute a deduction, the repayment request must be submitted to the Supplier Support Site within 6 months (180 days) of the deduction’s invoice date. Supplier will be credited for deductions only if GFI determines an error occurred.
If financial commitments owed to GFI by Supplier are greater than any outstanding invoices owed by GFI to the Supplier and such balances remain open for sixty (60) days, GFI will invoice the Supplier for the outstanding amounts and Supplier shall remit payment to GFI. If Supplier’s account is referred to an attorney or collection agency for collection, Supplier shall pay all GFI’s expenses incurred in such collection efforts including, but not limited to, collection agency fees, court costs, and reasonable attorneys’ fees.
If Supplier requires special handling of payment outside of normal GFI payment process workflows, an additional special handling service fee may be levied.
b. Initial Order Payment Terms
Payment terms for all initial orders from any new Supplier shall be net 60 days from date of invoice. If a significant portion of the initial order inventory remains on hand beyond the 60-day term, GFI may extend this initial payment period to allow time to work with Supplier to market new products to GFI customers.
c. Invoices
Option 1 (Preferred Method) Please send all invoices to payables@gfifoods.com Sending invoices to the email dropbox will ensure that your invoices are processed swiftly. Please note this address is only for new invoices. Inquiries/Questions emailed to the above address will not be forwarded. If you have questions regarding your account or old invoices, please submit a ticket on GFI’s Supplier Support Site.
Option 2 If you are unable to send invoices via email, you may mail them to our address listed below. Please be advised that this second option will cause delays in processing as we must first convert all physical files to digital records.
Gourmet Foods International Accounts Payable
3370 Panthersville Rd Decatur, GA 30034
d. Supplier Support Site – Help Desk
Gourmet Foods International has built a Supplier Helpdesk designed to assist our Suppliers by answering questions about all things GFI. Supplier questions should be placed through the Supplier Support Site’s ticketing system, and its comprehensive AI will route your query to the appropriate GFI team member as well as provide suggested answers based on responses to previous questions. Additionally, GFI’s Supplier Support Site hosts numerous articles that will answer many of the most frequently asked questions about working with GFI. The Supplier Support Site should be your primary resource when you have questions about Payables, Deductions, Marketing Programs, MANTIS, Spoilage, Logistics Issues, GFI Company Policies, etc. The Supplier Support Site uses machine learning to automatically suggest answers to your questions, so the more
you use the platform, the better it performs. (https://gourmetfoods.zendesk.com/hc/en-us)
The Supplier Support Site is the required portal for all deduction disputes and questions. GFI expects Supplier to perform its own due diligence in researching the deduction(s) prior to submitting a dispute. This due diligence includes, but is not limited to, reviewing the policies outlined within this document, reviewing submitted promotional commitments in MANTIS, and reviewing communications with GFI team members. Due to the time and labor-intensive process involved in reviewing and researching these deductions across departments, GFI reserves the right to charge a $50 per invoice research fee.
4. FOOD SAFETY
GFI has decided, individually and in response to the requirements of our customers, to utilize the framework from the Global Standard of Food Safety, which is implemented through our Quality Assurance Management System.
a.
Audit Requirements
Upon GFI’s request, Supplier must provide GFI the results of third-party audits. Current Certificates such as Federal, state, and/or local government audits will be acceptable if no third-party audit is available. The Supplier must notify GFI immediately of any third-party food safety reports, sanitation audits, or analyses that indicate the presence of Listeria monocytogenes, Salmonella, Generic E. coli, E. coli 0157:H7 or other bacteriological, viral or fungal presence in the Supplier’s Facilities. This applies to all products manufactured during the term of Supplier’s relationship with GFI. The Supplier must inform GFI immediately upon receipt of a FDA Form 483, USDA action involving any of their facilities, notice regarding a Reportable Food Registry involving their products, “Warning Letter”, “NOIE”, and/or “Dear Manufacturer” letter received by Supplier related in any way to their facilities or products.
b.
Recall Plan
Supplier shall provide their organization’s written implementation of their recall program to GFI. The recall program must demonstrate FSMA 204 compliance and list appropriate contact information to ensure full cooperation regarding any potential recalls associated with their facility. GFI requires Suppliers make immediate contact on all recalls or market withdrawals and promptly provide information within 6 hours of any announcement of said recalls or market withdrawals. Suppliers must submit a notification to qualitycontrol@gfifoods.com. Communications should include class of recall, product description, GFI item number, lot information, and all other relevant information required for products subject to FSMA 204 on company letterhead. In addition, compliance with FSMA 204 must be maintained at the item level. To ensure ongoing compliance, all requisite information must be updated in MANTIS to preserve complete item traceability for our customers.
GFI will pass through all fees related to the recall or market withdrawal including, but not limited to, recallrelated customer fees charged to GFI, freight related to product retrieval from customers, press contact, storage, shipping, regulatory seizure of goods, and disposal-related expenses.
c. HAACP Plan/Process Flow Chart
Supplier shall provide their written Food Safety Program to GFI including a production flow diagram implemented for the products sold to GFI. Supplier’s written program must meet FSMA and/or Federal Meat Regulation HACCP standards. If necessary, Supplier may be required to forward microbial testing and/or sampling protocol information for applicable product standards.
d. Letter of Guarantee
GFI expects its Suppliers to be aware of and comply with all applicable laws, rules, and regulations regarding food safety and food labeling standards including, but not limited to, the Federal Food, Drug and Cosmetic Act, as amended by the Food Safety and Modernization Act (“FSMA”) and/or Federal Meat Act (“FMIA”.) GFI
requires a Letter of Guarantee confirming this compliance. See our Supplier Support Site for our current Product Guarantee Letter.
e. COI – Insurance Certificates
Before a new Supplier’s products can be activated, a current certificate of insurance must be uploaded to MANTIS Supplier will maintain comprehensive general liability insurance (including, but not limited to, product/completed operations, independent contractors, and contractual liability insurance) from a carrier or carriers reasonably satisfactory to GFI, in a minimum amount of two million dollars ($2,000,000) combined single limit for bodily injury and property damage per occurrence; two million dollars ($2,000,000) for products/completed operations aggregate; and two million dollars ($2,000,000) general aggregate.
The certificate MUST list “Russell McCall’s and its affiliates, subsidiaries and related entities”. If you have more than one GFI division set up to sell direct, please note that only one COI is required to cover all divisions; assuming the insured is listed correctly as indicated above. Our mailing address is: 3370 Panthersville Rd Decatur, GA 30034 See our Supplier Support Site for a Certificate of Insurance Example
f. Disclosure of Supply Chain Information
GFI may require Supplier to identify the country and specific region of such country where each of the ingredients, components, or parts of Supplier’s Product are grown, produced, and/or manufactured. In the event of an actual or contemplated product recall, withdrawal, or other similar circumstance affecting Supplier’s Product or other products similar to Supplier’s Product, Supplier shall promptly identify the direct supplier or source of any of the ingredients, components, or parts of Supplier’s Product upon request from GFI. Supplier further agrees that GFI may provide such information to its Customers upon request from such Customers. To allow both Supplier and GFI to definitively trace the source of products as well as the place and time of their processing, all products must bear a unique lot or batch number that isolates the processing of products between sanitation efforts. Products produced in a facility or through a process that does not undergo sanitation must be designated by field and harvest date.
g. Organic and Kosher Certification
For a product to be identified as organic and/or kosher in GFI publications, GFI must have a current organic and/or kosher certificate on file. Organic certificates are required before products marketed and/or labeled as organic can be set up in GFI’s systems. MANTIS will require a copy of the Organic Certificate at the Item level when an item is marked Organic. Kosher certificates are not required before products can be set up, however, GFI will not identify a product as kosher if a kosher certificate is not provided. Renewal certificates should be loaded to the MANTIS item record, no later than the expiration of the previous certificate. Please submit a ticket to our Supplier Support Site if you need assistance.
h. Supplier Specifications
GFI also requests full written specifications for all products shipped to our facilities. This ensures products purchased from Supplier meet quality standards for both GFI and our joint customers. GFI requests that current production processes and ingredients are defined for all Supplier’s products. GFI also requires supporting documentation from Supplier for products that are labeled Kosher, Halal, Organic, Non-GMO’s, All Natural, or have any other pertinent designation.
5. SUPPLIER CODE OF CONDUCT
Gourmet Foods International strives to be first in food by doing business the right way. We expect all Team Members to understand and live up to the highest standard of ethics and integrity. We count on our Suppliers to be our partners in fulfilling our commitment to these principles. Our Suppliers include vendors, brokers, consultants, or other service providers to GFI. This Code sets forth the principles and ethical standards that we expect all our Suppliers to meet, and we ask that Suppliers understand and comply with this Code. Suppliers who knowingly violate laws or repeatedly fail to conform to these principles will not receive our business.
a. Legal Compliance
We expect each Supplier to conduct business in full compliance with all applicable national, regional, state, and local regulations, and laws of the countries in which they operate, including all trade, export and import controls, and all applicable antitrust and fair competition laws.
b. Human Rights
We are committed to treating our employees, our customers, and our business partners with dignity and respect for human rights as set out in the United Nations Declaration of Human Rights. As such, each of our Suppliers must have controls in place that:
o Prohibit child labor, forced or compulsory labor, and human trafficking.
o Ensure compliance with applicable wage, hour, and benefits laws, including minimum wage, overtime, and maximum work week laws.
o Verify the employment eligibility of employees.
o Respect the right of employees to freely associate, organize, and legally bargain collectively.
o Ensure a workplace free from discrimination and harassment, especially based on race, color, gender, age, sexual orientation, religion, caste, national origin, ethnicity, marital status, disability, pregnancy, or political beliefs.
c. Safe and Healthy Workspace
We require that all workplaces used to produce goods for Gourmet Foods International be safe and healthy work environments for workers. All working conditions must comply with applicable laws and industry standards, including clean and safe housing.
d. Food Safety, Quality and Regulatory Compliance
GFI is committed to ensuring our products meet the highest standards of safety and quality. We expect our Suppliers to provide products and services that meet or exceed all applicable government and contractual standards of safety and quality. In addition to complying with all applicable FDA rules and regulations, suppliers are required to adhere to the USDA’s National Bioengineered Food Disclosure Standard and maintain records that demonstrate compliance. For products sold in California, Suppliers must comply with Proposition 65 by providing clear and reasonable warnings about any chemicals known to the state of California to cause cancer, birth defects, or other reproductive harm, as applicable. For products sold in California, Suppliers must ensure they meet Proposition 12 requirements, including compliance with animal welfare standards regarding confinement for pork, veal, and egg-laying hens.
Suppliers must immediately report to GFI any deficiencies in product safety, quality, or compliance with these standards so that appropriate actions may be taken to recall or withdraw products and mitigate any risks to consumer health or regulatory compliance. In addition, suppliers are required to identify compliance with Prop 65 or Prop 12 in MANTIS at the item level.
e. Sustainability and Environment
Gourmet Foods International strives to be a good corporate citizen, improving the quality of life of our customers and our communities. We focus on these objectives: feeding the hungry, promoting sustainable products, and reducing our environmental impact. We seek to conduct business with Suppliers who share our commitment to these objectives.
f. Ethical Business Practices
We conduct our business ethically and honestly, and we expect the same of all with whom we do business. Our Suppliers must have policies and controls in place to prohibit and detect misuse of company assets, corruption, bribery, conflicts of interest, improper gifts, fraud, and embezzlement. Suppliers must respect and abide by GFI policies prohibiting improper gifts.
g. Confidentiality and Privacy
Suppliers with access to confidential and proprietary information about GFI must not disclose that information to any other person or entity without our prior written consent. Confidential and proprietary
information includes product specifications, cost, pricing, and customer information. Any unauthorized disclosure of confidential or private information related to Gourmet Foods International, its employees, or customers must be reported immediately to hrdepartment@gfifoods.com.
h. Speaking Up, No Retaliation
We encourage our Team Members and the employees of our Suppliers to speak up if something does not seem right. Supplier’s employees may report any concerns or suspected violations of this Code to hrdepartment@gfifoods.com All reports are confidential and may be provided anonymously where permitted by law. Suppliers must have a “no retaliation” policy that ensures that any employees of the Supplier may report concerns to any GFI employee without fear of retaliation or reprisal by the Supplier’s management.
i. Verification of Supplier Compliance
Gourmet Foods International seeks to conduct business with Suppliers who do business in accordance with the principles articulated in this Code. We will monitor and enforce this Code through audits, and we require our Suppliers to allow us access to their facilities as well as all relevant records. If a Supplier violates this Code, GFI may terminate the business relationship or require the Supplier to implement a corrective action plan. Suppliers must inform GFI immediately of any departure from this Code including regulatory compliance failures or other events that may put our customers at risk or cause damage to our reputation.
6. PRICING & DATA GOVERNANCE
a. MANTIS
GFI has developed a master data management platform (MANTIS) to manage supplier data collection, PO confirmations, price changes, customer promotional backup, GFI marketing commitments, product content, and critical supplier information bulletins, as well as act as a supplier document repository. MANTIS is a required data management interface that verifies external data and streamlines operational processes for our customers. Once GFI provides MANTIS credentials, Suppliers are required to use the portal for all data exchange. This includes new product setups, purchase order confirmations, pricing, promotions, food safety compliance, and cost changes. Enrollment and annual subscription for MANTIS are accompanied by a fee. If you have any questions regarding MANTIS, please submit a ticket on GFI’s Supplier Support Site.
b. Supplier Contact Management
It is the Supplier’s responsibility to assign a designated point of contact for enterprise-wide communication. Additionally, it is important to maintain updated contact information in your vendor profile in MANTIS. Neglecting to maintain updated contact information may result in missing time-sensitive, business critical communications. GFI will not be responsible for expenses related to missed communication due to inaccurate vendor contact maintenance in MANTIS. Please visit the Supplier Support Site for a detailed tutorial on updating vendor contact information
c.
Data Integrity and Accuracy
Supplier is responsible for maintaining the accuracy of their items data in MANTIS. It is critically important that this data be correct, clear, and professional. GFI publishes item data from MANTIS directly to customer integration platforms, promotional materials, global sales data pools, etc. Additionally, GFI utilizes this data in its operations throughout the supply chain, from the case specs in cubing out a container to marketing information used by GFI’s Sales teams. MANTIS provides the Supplier with the opportunity to control the data, which can be a powerful tool for promoting your items if properly utilized. Circumventing MANTIS data requirements by inputting irrelevant text to meet character requirements, uploading irrelevant photos using incorrect contexts to clear Digital Asset errors, deliberately falsifying data to clear errors, or by any other means, is not permitted. Missing, invalid, or deliberately falsified data will be subject to fines and will result in the item’s removal from customer product offerings
d. UPC, Size, Pack, Label and Nutritional Changes
All changes to existing products MUST be entered through MANTIS using the Item Update process described on the Supplier Support Site. Changes that occur to name, brand, size, pack, ingredient(s), UPC, or GTIN may require a new product submission. A 90-day notification is required. Pack changes that require warehouse handling during final conversion to new pack will incur a $50 per product per DC service fee. All changes must be communicated and updated in MANTIS prior to GFI acquisition of updated product. Any fees resulting from format or nutritional changes initiated by GFI customers will be passed on to Supplier
e. PO Confirmations
Supplier must confirm all GFI purchase orders in MANTIS. Any changes regarding pricing, available date for pickup, and/or estimated delivery date must be communicated via email directly to the GFI Buyer responsible (changes are not accepted via MANTIS.) After reviewing the requested changes, GFI’s Purchasing Team will update the purchase order internally. Changes will be reflected in MANTIS the following day. Purchase orders should not be confirmed in MANTIS until GFI’s Purchasing team has been notified of any necessary change
i. Pricing – Supplier is responsible for ensuring the pricing is correct before confirming the purchase order in MANTIS. If inaccurate pricing remains on a purchase order through receipt, it generates an invoice discrepancy forcing GFI’s Purchasing and Accounting teams to perform extensive research. Uncommunicated invoice discrepancies are subject to a $50 per invoice research fee.
ii. Pickup Date – Product should be made available for pickup on the requested date of the purchase order. Circumstances may dictate that the requested pickup date is not possible. In these instances, changes to the date must be communicated directly to GFI’s Purchasing Team. Please make every effort to ensure the available date for pickup on the purchase order is accurate before confirming the purchase order in MANTIS.
iii. Delivery Date – When Supplier is arranging the freight to a GFI Distribution Center, a delivery must be scheduled through Retalix. The appointment must be scheduled on or prior to the expected date listed at the time of Purchase Order confirmation in MANTIS. If the proposed lead time is not possible, the changes must be communicated directly to the GFI Buyer responsible. Once the delivery appointment is made, Supplier and Supplier’s carrier are responsible for adhering to the appointment and may be subject to fees for late arrivals, no-call no-shows, etc. (Fees are discussed in Section 9 of this document.
f. Supplier Cost Change Policy
All cost changes will be submitted and implemented based on the current GFI Cost Change Calendar as published in this document. Each Effective Date will only be available for selection in MANTIS during the published cost change window. GFI can only accept a change to the cost of an item once per Effective Date. All submitted cost changes must include the following and will not be considered submitted if any required data is missing. (Any questions about the Cost Change Process should be submitted to the Supplier Support Site.)
i. GFI Cost Change Submission in MANTIS, completed in accordance with all MANTIS submission rules ii. Cost change justification letter on Supplier letterhead stating the date of the last cost change and clearly explaining the specific factors driving the cost change, with supporting documentation, uploaded to the Cost Change Request in MANTIS. The addition of Cost Change Reasons on the cost change request in MANTIS do not remove this requirement. The letter should provide additional specific details for the change reasons
GFI does not accept cost changes by way of Purchase Order (PO) confirmations. If a cost change is not properly submitted according to GFI requirements, a claimed cost discrepancy at the time of PO confirmation will be denied. When a PO, confirmed by the Supplier, conflicts with an invoice or any other documentation, GFI reserves the right to have the PO price prevail.
g. Supplier Cost Change Calendar
All cost changes will be submitted and implemented based on the current GFI Cost Change Calendar Cost changes should not conflict with previously presented promotional programs. Cost changes that conflict with scheduled promotions will not go into effect until after the scheduled promotion has ended or will require
cost protection of the agreed to promotional net cost.
If an off-schedule price increase is granted by GFI Executive approval, the Supplier will be subject to a $250 rush fee PLUS $50 per item to implement. The cost change must be submitted in MANTIS, according to all GFI submission rules, and selecting a valid Effective Date. If approved for off-schedule increase, the Effective Date will be updated internally by GFI prior to final approval of the cost change. If GFI customer(s) refuse to accept the Supplier’s submitted cost change, Supplier shall determine whether they will (a) rescind the cost change, (b) provide a charge back (deviated pricing) to cover the cost difference for the customer(s), or (c) discontinue distribution of their product to the customer(s)
10/29/2024 – 01/13/2025 01/13/2025 03/24/2025
01/14/2025 – 03/24/2025 03/24/2025 06/02/2025
03/25/2025 – 05/26/2025 05/26/2025 08/04/2025
05/27/2025 – 08/04/2025 08/04/2025 10/13/2025
08/05/2025 – 10/13/2025
h. Price Protection
GFI requires Price Protection leading up to the date of the new price change effective date. Price Protection means a credit for the difference between GFI's new invoice price and the previous lower invoice price in the event Supplier shorts product to GFI up to two weeks (14 days) prior to the new price effective date.
In the event of a Supplier price decrease, Price Protection of existing inventory may be required if a GFI customer is expecting a new lower cost as a result of the COGS reduction to GFI. In this case, GFI will charge back Supplier based on the lost inventory value at the time the new price is effective. The Supplier shall credit GFI for the difference between the prior price paid and the new lower price for all affected Supplier products in inventory at any GFI location.
GFI reserves the right to conduct periodic pricing and promotional audits on our Accounts Payable records and execute justified deductions as necessary. These audits may be conducted within twenty-four (24) months of the close of the GFI fiscal year in which the transaction(s) occurred.
i. Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents in a standard electronic format between business partners. By moving from a paper-based exchange of business documents to one that is electronic, your team can enjoy major benefits such as reduced cost, increased processing speed, reduced errors, and improved relationships with GFI. Computer-to-computer EDI replaces fax and email order transmission. EDI documents can flow straight from GFI to your ordering platform.
GFI currently has the capability to transmit EDI 875 purchase orders to our vendors. The initial onboarding maintenance fee for EDI is $500 plus an annual service fee of $250 billed in the 3rd quarter of the calendar year when the system update is completed. To begin EDI onboarding, email your request to ediadmin@gfifoods.com, and include your GFI vendor number(s) and GFI Buyer name.
j. Customer Investment Commitments
Our Customers may elect to engage GFI to process billings for various programs, many of which are often directly negotiated and determined by the Supplier/Broker and the Customer. To efficiently reconcile customer deductions, GFI requires all promotional commitments to be entered into the MANTIS Supplier Portal prior to the beginning of the event. This request initiates inventory builds for promotional activity and
reduces time consuming administrative research when the deductions are initiated by the customer to GFI.
Neglecting to enter customer commitments into MANTIS creates additional expenses for GFI, unnecessary interpretation queries, and often compromises our customer service. All Supplier commitments submitted outside MANTIS are subject to GFI’s interpretation of the commitment. GFI will not assume responsibility for translating program communication to the Supplier’s intention when the details are not submitted in MANTIS. Any customer deductions taken from GFI initiated by the Supplier/Broker that were not entered in MANTIS prior to the customer deduction will be subject to a 10% research fee based on customer short pays deducted from GFI. (For example, $1000 deducted from GFI requiring research results in $1100 deducted from Supplier.)
GFI reserves the right to pass through all expenses which GFI has incurred from customers related to Supplier's products regardless of the time of such expenses. These expenses include, but are not limited to, charges for depletion, scan down, customer program pass-throughs, customer fines, coupon redemptions, advertising fees, food and trade show expenses, new product setup, resets, promotional allowances, spoils, reclamations, special events, returns, invoice discrepancies, in-store demonstrations, slotting fees, product recalls, third party audit charges for products discontinued by retailer, credits for recalls and manufacturer defects, and product/manufacturer performance-related fines and fees
GFI is often the billing agent for Supplier/Broker negotiated customer programs. Due to the complex nature of our Customer’s collection/deduction processes and periodic retailer post audits, GFI reserves discretionary claim to how the promotional discounts are reflected to our Customers. GFI will pass through the allowances or billbacks to our Customers based on the business model in place with the Customer. Suppliers have the option to manage and process these financial and/or marketing transactions directly with the Customer. By electing to process any financial/marketing transactions through GFI, the Supplier expressly agrees to all GFI policies related to the execution of the transactions and administrative fees detailed in our Supplier Policies and Guidelines.
k. Promotional Discounts
Suppliers are welcome to handle all promotional sequences directly with the Customer. In the event Supplier decides to own promotional reconciliation responsibilities, we ask that all parties maintain open communication to help promotional inventory build processes.
i. Off Invoice (OI) is the preferred method of promotion for GFI. All OI promotions are to be submitted with specific buy dates for the promotional period. GFI Procurement will make every attempt to accurately forecast promotional inventory needs and order accordingly. In the event the promotional activity exceeds inventory ordered during the buy period, over-pull promotional shipments will be charged back to the supplier at the OI promotional rate.
ii. Manufacturer Chargeback (MCB) is also a method where GFI acts as billing agent for Supplier’s promotional events. All MCB promotions are to be submitted with specific sell dates for the promotional period. MCB promotions will be charged back to the Supplier based on all eligible outbound case movement to the Customer during the promotional period. MCB date range may include buy in date for the customer
l. Customer Programming and Financial Services
GFI, GFI’s Suppliers, and GFI’s Customers all share responsibility for promoting a Supplier’s Products. Many of GFI’s Customers have programs in place to help promote products. Customers often bill GFI directly for the costs associated with such programs and services. GFI is then expected to collect these funds from its Suppliers. These costs and administration fees are collected in the form of Supplier deductions. It is the Supplier’s responsibility to cover all costs and fees charged for the services performed in connection with the Supplier’s products.
7. NEW PRODUCTS
All new product commitments and corresponding GFI or customer-specific marketing programs must be entered in MANTIS.
a. New Item Launch Plan
All new product setups in MANTIS should include a New Item Launch Plan. A New Item Launch Plan can take many shapes and is intended to shepherd more customers to your product through opening discounts, free fills, intro allowances, and BOGOs. These launch plans are open to all GFI customers unless specified for exclusion in the comment section on the new product launch plan tab of new item setup. The plan is crucial to the success of new items at GFI. Without a new item launch plan, items often do not scale appropriately and fail to become efficient slots in our DCs. Failure to provide a thoughtful New Item Launch Plan can subject your new item(s) to a risk share fee of $1000 per DC per SKU. Any questions regarding the implementation of risk share fees or the New Item Launch Plan should be directed to your sales contact(s) at GFI
b. New Product Samples
GFI requires one (1) sample case per distribution center on all new products. The sample case is used for retail and foodservice customer presentations and special image photography often required for e-commerce platforms Supplier can opt to send complementary product with their opening order to GFI in lieu of sales/marketing pulling from inventory at GFI acquisition cost.
c.
Six Month Guarantee Sales Agreement for New Products
Supplier will be responsible for all new products purchased by GFI during the first six-month launch period. This guaranteed window ensures that all parties (GFI, Manufacturer, Broker) are aware and active in the execution plan for the new product into the marketplace. Suppliers are encouraged to collaborate with GFI's Sales & Purchasing teams to determine appropriate initial order quantities on new products. Careful consideration of which GFI DCs your product is placed helps to mitigate any returns or out of date deductions during the six-month guaranteed sale period. It is critical that the DCs chosen have strong regional demand, an aggressive promotional plan, and/or a broker network to help sell the products at the retail and foodservice levels The six-month guaranteed window begins on the date the opening order arrives at each GFI DCs. Opening order out of date credits will not be deducted if Supplier objects (in writing) to the opening order quantities placed by GFI.
d. Opening Orders and New Retailer Placements
GFI’s retail Customers generally require complimentary goods support for any new products or new stores. Since Suppliers typically do not have a financial relationship directly with the Retailer, these charges are normally passed through GFI and are either a lump sum payment or deduction agreed to between Supplier and Customer or in the value of a free product equivalent. It is expected that all Suppliers agree to support these programs. If the Supplier is unwilling to support their placement cost into retail distribution and recognizing that GFI has no consumer equity with the brand or product (which is solely enjoyed by the Supplier), GFI will not fund this program and will not offer the product as part of our assortment with the Customer. We ask that Suppliers work with GFI Retail Account Managers to understand those GFI customers requiring this level of complimentary goods support.
e.
Temporary Slot Fee
GFI sets up and slots thousands of new products every year. New products and product innovations are paramount to our future growth. Unfortunately, the facilities we operate have a capacity at which we can’t exceed. It is for this reason we aspire to run efficient slots with limited product redundancies. GFI is frequently asked to run temporary (in/out) slot positions by Suppliers and Customers The set-up process for temporary products is cumbersome and expensive. Additionally, products without a worn path typically create additional handling and higher risk exposure. For these reasons, GFI has created a temporary slot occupancy fee of $500 per product per DC. This fee may be waived in some circumstances. Contact the customer-specific GFI Account Manager with any special circumstances to be considered to waive this fee.
f. Supplier Negotiated Purchase Orders
In the event Supplier works directly with a Customer to stock an item, and GFI is directed by Customer to purchase specific quantities, Supplier is responsible for this product. Supplier-directed purchase orders open GFI to significant risk, particularly if the realized movement is significantly less than Supplier’s forecasts. Potential fees for this situation include, but are not limited to, storage fees, discounts to move stagnant product, freight to level inventory across GFI divisions, and/or costs to return product to Supplier. Due to the unpredictability of such situations, fee amounts will be determined on a case-by-case basis.
g. Supplier/Broker Negotiated Customer Exclusives
It is common practice that GFI customers work directly with Suppliers or Brokers to create special batches, private label, or products exclusively for specific customers. GFI fully supports these efforts and welcomes the opportunities to use our services to get your products to market
Customer exclusive items, both deliberately arising from Supplier negotiated terms or de facto from programs lacking sufficient investment support (No New Item Launch Plan), add additional challenges and expense to GFI. These items occupy valuable warehouse slots with limited customer options, which reduce GFI’s shipping and receiving productivity. Proprietary items have much fewer contingency plans if demand patterns unexpectedly decline. If Supplier commits to an exclusive program or sells a product to a customer that does not accompany a launch plan, GFI reserves the right to charge slotting fees
When exclusive programs carry additional handling expenses, procurement challenges, and/or inflated financial risk, GFI may place these products into our Vendor Managed Inventory (VMI) program.
h. Vendor Managed Inventory (VMI)
While GFI welcomes partnering with Suppliers to warehouse, inventory, and transport customer exclusive products, these products present some concerning risks. Exclusive products have a limited customer base. If demand patterns change, GFI has fewer contingency options to avoid out of date threats. The VMI program is a risk share program that facilitates better forecasting and joint accountability for the exclusive commitments made by the Broker or Manufacturer. VMI gives Suppliers total transparency to key performance indicators and final say in order quantities.
This program gives transparency to analytics necessary to see trends and areas to focus on for improved risk position. This program will help reduce out of dates and foster lower minimum purchase/production requirements. Talk to your account-specific customer service team for more information on this program.
i. Fair Share Billing
Some customers require the use of business-critical software with an associated subscription fee. These subscription fees are subject to pass-through billing to all Suppliers with GFI distribution to the customer. This fee is associated with, but may not be limited to, distribution to Kroger, Ahold, and Wakefern.
8. INVENTORY & DISTRIBUTION
a. Unacceptable Products
GFI may refuse to accept delivery of Unacceptable Products. If unacceptable product has been delivered to GFI or, if after delivery to GFI or its customer, the product is discovered to be unacceptable through no fault of GFI or the customer, Supplier shall accept products for return for full credit and with freight paid by Supplier. Alternatively, at Supplier’s discretion and expense, GFI may dispose of such unacceptable product in a manner as the circumstances may reasonably dictate, and Supplier shall reimburse GFI for any costs realized by GFI for the sale or disposal of the affected product. Notwithstanding any other provision of this Section, the Supplier will not be required to reimburse GFI for unacceptable product if the product condition resulted solely from
negligence or willful misconduct in the handling of the product by GFI or a GFI customer.
Unacceptable Product means any one of the following, if applicable to Supplier’s products:
i. The product is unable to maintain its quality and integrity in accordance with industry standards for the duration of the product's shelf life.
ii. The product is unable to maintain its integrity with respect to its packaging, labeling, and/or UPC compliance in accordance with industry standards.
iii. The product fails to meet the applicable warranties of this Agreement.
iv. The product is the subject of a recall or voluntary withdrawal.
v. The product is introduced to a Customer with clearly stated restrictions and is found to be in non-compliance.
b. Product Loss Claims (PLCs) and Unsellable Products
PLCs are generally reported monthly by division and are deducted at GFI’s wholesale price. This covers the costs incurred on top of the invoice price, including stocking, picking, and shipping the defective product. Except for some full cases or excessive quantities, PLCs/Unsellable products are not picked up by GFI but are destroyed at the store level. PLC/Unsellable claims are not covered by any spoils allowance programs between the Supplier and GFI. Product Loss and Unsellable Products Claims are generated in several different ways. It is GFI’s expectation that all the below examples are covered 100% by the Supplier.
i. Defective Product – This includes defects in the product that may not be apparent until the case is opened by the customer, such as poorly sealed product, tops/ends not glued shut, dented cans/damaged boxes inside a sealed, undamaged case, and product that spoils before the expiration date on the product.
ii. Consumer Returns – Products returned by the Consumer to the retail Customer where they purchased it. GFI asks its retail Customers to provide explanations and lot/date codes for these returns but cannot guarantee that it will receive them and be able to pass that information on to Suppliers. If a Supplier notifies GFI that excessive quantities have been returned, GFI may, in its sole discretion, investigate
iii. Weight Claims – GFI will audit received weights as needed. Any deductions resulting from short weight product in GFI’s possession will be documented and reconciled for accurate pass through to end user. Customer initiated deductions based on incorrect weight will be the responsibility of the originating Supplier.
iv. Unsellable – Unsellable Products are products removed from the primary channel of distribution for any reason (discontinued, damaged, incorrect packaging, etc.) They will be disposed of at warehouse level or Supplier can coordinate pickup from GFI. Packagingrelated decisions that cause product damage somewhere in the distribution channel fall into this category.
v. Distribution Change – If GFI loses distribution responsibilities due to Supplier decision to sell direct, change distributor, or change product format, Supplier must pick up the remaining inventory at GFI acquisition cost or allow GFI to dispose of inventory and billback.
vi. Supplier Discontinuations – It is common practice for Suppliers to end production of certain products for a multitude of reasons. In many cases the communication of such decisions quickly vacate demand from such products as customers do not wish to carry or expose their customers to products that they will not be able to carry forward. It is for this reason GFI has the option to invoice and deduct for any supplier-initiated discontinuation that produces out of date expenses or distressed sale discounts to move remaining product
c. Customer Discontinued Products
Supplier will accept financial responsibility and provide full credit at GFI's landed cost for products in GFI's inventory that are discontinued by retailers, Supplier, or GFI. In such cases, Supplier's products in GFI's inventory may be returned, donated, or salvaged, at GFI's discretion.
d. Spoils Allowance
Spoils Allowances are intended to address spoils within GFI DCs. These allowances do not support or replace credits at retail. These spoils allowances, which are typically significantly lower than retail reclaim credits, are intended to share the expense driven by packaging issues that create unsellable products prior to departure from the GFI DC. GFI frequently monitors damage reports to identify likely candidates contributing to excessive damage. Products that are identified as high-risk for damage will be required to participate in a spoils allowance program.
e. Split/Broken Cases
Split/Broken Cases refer to the selection of individual units (eaches) from the standard case to satisfy order requirements. Repacking of this product into smaller cartons when inventoried and shipped is required in GFI’s facilities. GFI reserves the right to charge $0.35 - $0.95 per unit for any products it case splits in its distribution centers to create a more manageable handling size for Customers and our warehouse operations team. Individual fee rates per SKU will vary based on the handling risk associated with the specific SKU. Excessive bulk canned or bagged products may fall into this category as the transport of heavy products often produces heightened damages in our possession or during transport. GFI encourages Suppliers to utilize proper case packs acceptable to the retail and foodservice community instead of requiring GFI to install case splitting services.
f. Code Dates
GFI requests that all products be identified with an open coded shelf life or “Use By” date, which shall appear on the product and be printed on the outside of the shipping case. GFI reserves the right to accept products that do not adhere to this requirement. However, in all such cases Supplier must provide the actual expiration date, by product, on the packing slip and/or Bill of Lading. Supplier must provide GFI with the total product shelf life, in days, at the time of production Supplier shall ship product so that it has a minimum 65% of its shelf life remaining when it is received by GFI.
GFI’s Purchasing team will notify Suppliers of non-compliant code dated product and take one of the following actions based on the specific situation. GFI reserves the right to refuse product delivery at their discretion.
i. Arrange for pick up and replacement of non-compliant product at the Supplier’s expense.
ii. Accept additional marketing support to increase sales and reduce potential spoils.
iii. Agree with Supplier to allow for normal inventory depletion.
GFI will assess an administrative fee of 10% of cost on all cases received with less than the required shelf life remaining. Warehouse spoils of non-compliant product will be deducted from the Supplier at the landed cost to GFI.
If products do not have a human readable calendar expiration date on the outside shipping case, GFI will bill back any products that are not sold before the expiration date on the package.
g. Vendor Storage Service Fees
GFI deploys a discretionary service fee for holding inventory that has been in our possession for a minimum of 60 days and has a projected inventory exceeding another 3 months (90 days). Slot positions are a premium in our facilities. It is important that we turn inventory in a reasonable amount of time. Storage fees will be assessed monthly by item. A supplier can schedule pick up of excessive inventory at any time to avoid this fee. This fee serves to encourage efficient inventory management, mitigate the costs associated with storing surplus stock and discourage the accumulation of excess inventory in our facilities. Vendors are welcome to work directly with our sales team to create a plan to sell product to our customers and return to a
Ambient
Refrigerated
Frozen
h. GS1-128 Compliance
per Pallet
per Pallet
per Pallet
GS1-128 Compliance means each product has a correct and scannable barcode formatted according to the GS1-128 Symbology as set forth in the GS1 Organization’s General Specifications AND meets all GFI’s requirements detailed herein. GS1-128 compliance improves our customer experience and food safety management, providing efficient and convenient visibility to all products as they pass through our distribution centers. Many GFI Customers require that all products shipped to them have a GS1-128 barcode with date and weight when applicable. Any questions about GS1-128 Compliance and GFI’s requirements, please submit a ticket on GFI’s Supplier Support Site.
i. All items shipped to GFI must have scannable and correctly coded GS1-128 barcodes with the name of the item on the exterior cases. Specific requirements are detailed further in this document.
ii. Each GS1-128 barcode uniquely identifies each item. When there have been changes to a product’s ingredients or formulation, nutrition, pack, and/or size, GFI requires a new item be set up in Mantis with a new GTIN-14 as these changes to the product constitute a fundamentally new product
iii. GS1-128 barcodes must be printed to accepted specifications (i.e. size, color, etc.). GFI only accepts the single line GS1-128 format
iv. If product is variable weighted (invoiced to GFI by weight) or dated (perishable product), then that information must be coded into the GS1-128 barcode. Please review the GS1-128 Policy for specific requirements
v. All items must have a Lot/Batch number, using the (10) Application Identifier at the end of their GS1128 barcode.
vi. All GS1-128 barcodes must have all Fixed Length Data Fields before any Variable Length Data field
vii. In the event a Non-Compliant barcode causes invoicing issues between GFI and its customers, GFI reserves the right to bill the Vendor to recoup the customer costs and fees associated with the NonCompliant barcode.
viii. GFI will assess fees for each case that arrives with a Non-Compliant barcode, and the item will become flagged. An additional fee will be assessed if relabeling is required at GFI facilities. Please review the GS1-128 Policy for specific requirements.
ix. Before an item is unflagged and becomes Compliant once again, the barcode must be verified first via the Supplier Support Site then once more in-house on actual cases. GFI must be notified when flagged product for review first ships and what PO it is expected on, otherwise fee disputes may be denied
x. Vendors may dispute the flags and fees by submitting a ticket to the Supplier Support Site. The GS1-128 dispute review can take up to 6 weeks to research and process. Items will be unflagged and deemed Compliant once this verification process is complete. A decision will be made regarding repayment subject to the GS1-128 policies and procedures
xi. It is the Vendor’s responsibility to maintain compliance for each of their items. This entails good print quality, correct format, and correct data in the barcode and in Mantis.
i. Recalls and Product Withdrawals
Recall occurs when a Supplier removes or corrects a product that the FDA or USDA considers to be in violation of the laws it administers and against which an agency may initiate legal action (e.g. seizure). Recall does not include a market withdrawal or stock recovery. Market withdrawal involves a Supplier’s removal or correction of a product which does not pose a potential threat to consumer health or safety, is not materially misleading, and is not subject to legal action by the FDA or USDA.
Supplier shall cooperate with GFI on all recalls and market withdrawals. Supplier shall promptly provide
information requested by GFI as needed for GFI to administer a recall or market withdrawal. Supplier shall comply with all applicable requirements including, but not limited to, GFI’s recall policy as it may be amended from time to time.
In the event of a recall or market withdrawal, GFI will charge Supplier back for all fees related to the recall or market withdrawal including, but not limited to, any Customer fees related to the recall and charged to GFI, costs associated with product retrieval from retail stores, storage, shipping, disposal related costs, and all communication related expenses. Furthermore, GFI reserves the right to charge back to Supplier any costs or fees assessed to or imposed upon GFI by its Customer(s) resulting from or relating to a press release, government advisory, or warning letter relating to the product.
The fee amount can vary depending on the recall type and number of stores affected
i. $100 per SKU per DC - Recall or Incident involving only a warehouse hold for return or disposal
ii. $175 per SKU per DC – Recall or Incident involving “quality concern” and field personnel intervention.
iii. $250 per SKU per DC – Recall or Incident involving a “health risk or other hazard” and field personnel intervention.
Retailer Size Fee
1-5 stores
6-10 stores
11-30 stores
31-50
$50
$100
$150
9. SHIPPING & RECEIVING PRODUCT
a. Mis-Ships/Shortages/Over-Ships
Supplier must notify the GFI Purchasing Team of any shortages or out-of-stocks within 96 hours of receiving a purchase order. Notifications of upcoming shortages results in better fill rates and service to our customers. It is the Supplier’s responsibility to verify all quantities, pricing, and pickup/delivery dates with GFI’s Purchasing Team. After communicating any changes to Purchasing, the corrected information will be reflected in the PO Confirmation process on MANTIS
i. Supplier shall maintain a 95% fill rate or higher. Failure to meet or exceed the acceptable service level may result in product replacement, discontinuation, or fees arising from customer-initiated financial penalties based on GFI fill rate
ii. In the event of a mis-ship where GFI receives product that it did not order, GFI will notify Supplier of the product and inventory count. Supplier will be responsible for all costs associated with the mis-ship.
iii. In the event an over-ship occurs, GFI may agree to receive the product above and beyond the purchase order quantity at a discounted rate of 30% OI.
iv. When an over-ship occurs and GFI declines to receive the product into inventory, GFI may, in its sole discretion, store the product in its Distribution Center (DC). Any such product must be removed from the DC within two weeks (14 days) of the date received. If the product is not removed from the DC within two weeks, GFI may, in its sole discretion, dispose of any such product stored in the DC and assess a fee of $125 per pallet per week of storage. GFI assumes no liability for any over-shipments stored in its DC.
b. Supplier Delivery
For all inbound freight, Supplier or Supplier’s carrier must schedule a dock appointment with the applicable
GFI DC at least forty-eight (48) hours in advance of delivery. Appointment is to be scheduled on, or prior to, the need by date listed at time of PO confirmation. Appointments must be scheduled at www.NCRpowertraffic.com.
All shipments shall be palletized, shrink wrapped, and labeled with a GFI Pallet Placard (sample). The Pallet Placard includes Supplier address, PO #, pallet count, and destination GFI DC information. The Pallet Placard Template can be found on the Supplier Support Site. Failure to properly label pallets may result in a $50 per pallet fine.
All shipments must contain a clearly visible packing slip affixed on the surface of one side of one pallet. Packing lists must include:
I. Supplier and shipper name
II. GFI P.O. number
III. Product number/product number
IV. Order quantity (must match P.O. quantity)
V. Proof of Delivery receipt (GFI must be able to retain a copy of the signed POD)
VI. Accurate counts of cases shipped and number of pallets
VII. Itemized Bill of Lading
For all “Catch Weight” products, the invoiced weight and/or weight sheet must accompany the shipment. If the total actual weight is not provided or incorrect, then payment may be delayed or GFI may refuse to accept the order.
Identical products must be shipped together on the same pallet unless ordered in greater or less than pallet quantities. Any identical products shipped with mixed expiration dates must be separated at the time of delivery. Products ordered in even layers, as identified by Supplier, must be shipped in such layers. All shipments must be configured to GFI’s “tie and high” standards upon arrival at the GFI DC. If mixed or nonconforming pallets are shipped, then Supplier shall be responsible for all sorting and segregating charges, including, without limitation, any lumper fees.
Multiple POs delivered by Supplier or Supplier’s carrier to a GFI DC, where GFI assumes responsibility for the final transportation sequence to other GFI DCs, must be palletized separately and clearly marked on all 4 sides of the pallet. Pallet stacking is permitted if each GFI DC is separated by a safe pallet barrier and correctly labeled for final destinations. Sorting and segregating charges will be assessed if divisional backhaul POs are mixed on a pallet.
c. Logistics Deliveries
Utilizing GFI’s complex network of backhaul lanes is an efficient means to get product to various warehouses around the country. Logistics deliveries are situations where Supplier is delivering POs destined for multiple GFI DCs to one central location, or GFI is picking up orders destined for multiple DCs GFI logistics then coordinates last mile delivery to our various facilities. GFI’s vendor order minimum is by physical delivery location, not by purchase order. If a Supplier refuses to separate purchase orders that comply with vendor order or delivery minimums on a cumulative basis, GFI reserves the right to charge a $250 fee per delivery to offset additional handling and paperwork this process requires.
d. Late/Unscheduled Loads
A delivery appointment specifying the date and time of delivery is required for all loads. Suppliers will be assessed a fee for late or unscheduled deliveries. GFI reserves the right to refuse delivery of any late or unscheduled load. Delivery drivers and co-drivers are not allowed on GFI docks without permission from GFI management. GFI may, in its sole discretion, invite drivers and/or co-drivers onto a GFI dock while GFI verifies temperature readings.
Timely deliveries are critically important to maintaining an efficient supply chain. Not only do no-shows or late deliveries affect fill rates with our joint customer base, but they also disrupt internal operations at GFI’s
DCs. Our Receiving teams allocate their resources, including setting staffing schedules, based on the volume of scheduled deliveries. By delaying or not showing up to their scheduled appointment, Supplier is inadvertently wasting GFI’s human and material resources. Additionally, the unused appointment slot could have been used to receive a different delivery, hence, another opportunity cost.
Late Truck Fees
Delinquent Arrival Fee
Over 2 Hours Late
Unscheduled or Less than 24
Appointment No Show $500
e. GFI Unloading Services
GFI has several Unloading services accompanied by a fee. These industry-standard service fees are intended to expedite checkout and get your trucks or contracted carriers back on the road. Additional efficiencies gained support our effort to maintain competitive cost structure to our mutual customer base. GFI has 2 methods of payment for lumper services: 1) Comcheck 2) GFI Supplier invoice deduction. Driver will be required to sign for the work order prior to final checkout..
All product needing to be palletized will be loaded on a 48 x 40 B-grade pallet. Pallets should not be stacked higher than five feet. Pallets exceeding the five-foot ceiling are subject to restacking fee. Restacking fee will be assigned based on the hourly rate needed to recreate compliant pallets for GFI distribution centers.
Lumper/Unloading Service Fees
Pallet Breakdown 6-10
f. FOB Pickup/Backhaul
GFI schedules loads for pick up at the Supplier’s dock according to an agreed upon schedule. If loads are not available for a scheduled pick-up by GFI or its carrier, or if GFI or its carrier is detained at Supplier’s dock, GFI shall assess detention fees.
i. Inter-Company Backhaul Pallet Separation Fee: In certain circumstances, Supplier may organize delivery to a GFI facility and GFI will backhaul the “last mile” transport to the remaining GFI facilities. It is important that in these circumstances the divisional backhaul Purchase Orders are delivered on separate pallets. Safe pallet stacking is permitted if each GFI DC is separated by a clear pallet barrier and correctly labeled for the final destinations. Sorting and segregating charges will be assessed if divisional backhaul POs are mixed on a pallet. GFI will charge $125 per pallet when the warehouse must separate mixed pallets into division-specific orders. Please make every attempt to deliver intercompany backhauls in compliance with GFI policy.
ii. Pickup Request Date: Product should be made available for pickup on the requested date of the purchase order. Any changes to the pickup date or pickup location need to be communicated
immediately to GFI’s Purchasing Team.
iii. POD for GFI Backhaul: GFI drivers or hired carriers can only sign for product “subject to count and inspection”. POD and invoice confirmation will take place upon delivery to GFI’s final shipment destination. If any shortage or damage is discovered at final delivery point, GFI will deduct the amount of shortages and/or damages from Supplier’s invoice.
1. The signed POD at final destination detailing GFI Receiving comments will represent valid Proof of Delivery and Supplier backup for invoice short pays.
2. If you have questions about short-paid invoices due to receiving discrepancies, please submit a ticket on GFI’s Supplier Support Site.
iv. Labeling GFI Pickup or Backhaul Pallets: All shipments must be labeled with GFI’s Pallet Placard, which includes Supplier name/address, PO Number, pallet count, and destination GFI DC information.
v. Backhaul Freight Surcharge: GFI charges a 3% surcharge on purchase order pick-ups arranged by GFI. Suppliers can choose to opt out of this surcharge by arranging freight themselves to GFI facilities
g. Detention Fee
GFI or its designated agent (“Carrier”) may pick up product at Supplier’s dock. If the Carrier is required to wait at Supplier’s dock for more than sixty (60) minutes beyond the scheduled pick-up time, Supplier shall be liable for all detention charges that may be assessed by the Carrier. GFI charges a Detention Fee of $100 per hour, starting after the first 60 minutes beyond the original appointment time.
h. Rescheduling Fee
If GFI has a scheduled pickup time, confirmed by the Supplier, but the Supplier is unable to honor the scheduled pickup time, GFI may assess a Rescheduling Fee to return to the Supplier for pickup GFI will charge $300 for a rescheduled shipment that is not available at the Supplier’s confirmed initial pickup appointment.
i. Supplier Performance Levels
i. On-time and in-full shipments are critical to the supply chain. Supplier shall maintain an average fill rate of 95% or higher (“Fill Rate Threshold”) on a consistent basis with a minimum acceptance level of 90% for any individual product. If the fill rate falls below the Fill Rate Threshold for more than two (2) consecutive P.O.s, Supplier shall provide written notice to GFI. Such notice shall state the reasons for the inability to meet the Fill Rate Threshold and the anticipated date for a return to compliance with the Fill Rate Threshold. All notifications shall be sent to GFI’s Purchasing Team.
ii. Consistent fill rates below 90% on regular stock items for orders inside average weekly demand are subject to a 5% Fill Rate Compliance Fee. This expense helps offset the intercompany freight costs to spread inventory to all divisions to maintain GFI’s fill rate to our customers.
iii. Supplier shall notify GFI of any quantity change at the time of PO confirmation. If GFI is not notified and the quantity received is short, GFI will apply a Service Level Non-Compliance Fee of 10% to the dollar amount difference between your service level and the 90% minimum acceptance level. All notifications of shorted orders shall be sent directly to GFI’s Purchasing Team
iv. Supplier shall provide written notice to GFI within five (5) days of identification of any expected long-term stock shortage. Such notice shall state the reasons for the expected long-term stock shortage and the anticipated date when Supplier shall be able to ship or deliver product. All notifications should be sent to GFI’s Purchasing Team.
j. Inventory Transfers and Balancing
GFI strives to provide a strong service level to our Customers. With this focus, GFI may request help
from Suppliers to balance inventory across our DCs. If GFI is unable to secure inventory from a Supplier because a product is out of stock or needs faster replenishment to a GFI DC than the supplier can facilitate, GFI will transfer product to meet Customer service level expectations. Supplier shall be responsible for the cost associated with such freight transfer.
10. GFI MARKETING PROGRAMS
GFI’s Marketing Program is designed to assist all our Supplier partners in mirroring the same double-digit growth GFI has experienced consistently over the last 53 years. The marketing program has many different menu products catering to Suppliers of all sizes.
a. New Item Launch Plan
A New Item Launch Plan is crucial to the success of new items at GFI. Without a new item launch plan, items often do not scale appropriately and fail to become efficient slots in our DCs. Failure to provide a thoughtful New Item Launch Plan can subject your new item(s) to a risk share fee of $1000 per DC per SKU. The New Item Launch Plan for each SKU is input for each item in MANTIS during item setup. Any questions regarding the implementation of risk share fees or the New Item Launch Plan should be directed to your sales contact(s) at GFI.
b. Promotional Planning and Expectations
GFI requests participation in our Marketing programs to assist us in growing your brand. Our Purchasing, Sales, and Marketing Teams will work with you to customize the appropriate marketing program that fulfills our mutual goals and objectives.
Yearly promotional plans are encouraged with emphasis on monthly and quarterly promotions to drive new placements and growth with mature customer bases.
c. Marketing and Advertising
GFI’s Advertising & Marketing Programs have been designed to promote Supplier’s products to GFI Customers and to the end consumer. GFI programs build brand awareness, advertise promotions and seasonal products, educate store buyers, and target specific channels such as ecommerce, conventional retailers, independent markets, and foodservice.
Participation in these programs is encouraged for the long-term growth and success of a Supplier’s product line. Additional information about GFI’s Marketing Programs is available through MANTIS and the Supplier Support Site
d. Depletion Reports
GFI offers a multitude of fee-based reporting such as sales and inventory reports to monitor brand development, reimburse broker partners, and identify areas of sales opportunity. Please be advised that certain customers have requested GFI not disclose their shipment data in these movement reports. Reports available and pricing can be reviewed on our Supplier Support Site.
11. PRESS RELEASE POLICY
GFI senior management must be informed of any reference to GFI in a press release, posting on Social Media, or reference in print publication prior to publication or distribution.
If you have questions regarding any section of this document, please submit a ticket on GFI’s Supplier Support Site.
