Jan 24, 2006
Washington, D.C. – January 24, 2006 – The Food Marketing Institute (FMI) and the Grocery Manufacturers Association (GMA) today issued recommendations for reducing the volume of unsaleable products.

Developed by the Unsaleables Leadership Task Force, this new report, “Improving Unsaleables Management Business Practices – Joint Industry Recommendations,” outlines how manufacturers and retailers should collaborate to fix the root causes of unsaleables and improve supply chain efficiencies. Key recommendations include:


  • Unsaleable products should be processed through reclamation centers.


  • Trading partners should use product condition data to better understand where and how damage occurs in the supply chain.


  • Current data synchronization and registration initiatives should be expanded to help reduce unsaleable product volume.


  • Trading partners should continue to use the voluntary guidelines and tools published in the “Joint Industry Report: Product Reclamation Centers in 1990” – now known as the JIR – for efficient product reclamation.


“Despite the advances we have made in supply chain technologies and efficiencies, the costs of unsaleables continue to increase. To change this situation, manufacturers and retailers must work together to identify and correct the root causes of unsaleable products,” said GMA Senior Director of Industry Affairs Karin Croft.

“FMI and its retailer/wholesaler members are committed to working with manufacturers to reduce the cost of unsaleables and enhancing distribution processes,” said FMI Senior Director of Industry Relations Patrick Walsh. “This new report offers a direction for reaching our shared goals.”


Since the first industry benchmarks were published in 1995, the average reported rate of unsaleables has grown from 0.75 percent to 1.06 percent in 2004. The task force was formed from the Joint Industry Unsaleables Steering Committee at the request of the FMI and GMA boards of directors to develop new recommendations for lowering the rate of unsaleables. It comprises representatives from more than 30 manufacturers and retailers. The group completed its work in November 2005 and presented its recommendations at the Joint FMI/GMA Board meeting on Jan. 22, 2006.

For a copy of “Improving Unsaleables Management Business Practices – Joint Industry Recommendations,” contact GMA’s Chris Lashbrook, clashbrook@gmabrands.com, or FMI’s Patrick Walsh, pwalsh@fmi.org.


###


Food Marketing Institute (FMI) conducts programs in research, education, industry relations and public affairs on behalf of its 1,500 member companies — food retailers and wholesalers — in the United States and around the world. FMI’s U.S. members operate approximately 26,000 retail food stores with a combined annual sales volume of $340 billion — three-quarters of all retail food store sales in the United States. FMI’s retail membership is composed of large multi-store chains, regional firms and independent supermarkets. Its international membership includes 200 companies from 50 countries.


The Grocery Manufacturers Association (GMA) represents the world’s leading branded food, beverage and consumer products companies. Since 1908, GMA has been an advocate for its members on public policy issues and has championed initiatives to increase industrywide productivity and growth. GMA member companies employ more than 2.5 million workers in all 50 states and account for more than $680 billion in sales. The association is led by a board of member company chief executives. For more information, visit the GMA Web site at www.gmabrands.com.