on 26-12-2014 09:30 AM
Woolworths has billed suppliers for accounting errors that date back more than five years, and has deducted money it claims it is owed from the trading accounts of suppliers without their permission.
Australia's biggest supermarket chain has been reviewing supplier accounts under a "forensic accounting program" that has been running for 18 months, in an effort to recoup tens of millions of dollars from suppliers by the end of December.
Suppliers are receiving bills from Woolworths, claiming they have charged the supermarket the wrong amount, or supplied an incorrect quantity of a product.
In my case, I have received an invoice for thousands of dollars dating back from 2010," said one supplier, who did not want to be identified.
"How am I meant to recheck the details of an order from four or five years ago? I questioned it, but I am being pressured to pay."
The revelations follow a tough month for the supermarket industry.
Last week, Fairfax Media revealed that Woolworths faced accusations of bullying from suppliers, who have been asked to pay millions to help to fund a discount war.
on 26-12-2014 09:34 AM
@grandmoon wrote:Woolworths has billed suppliers for accounting errors that date back more than five years, and has deducted money it claims it is owed from the trading accounts of suppliers without their permission.
Australia's biggest supermarket chain has been reviewing supplier accounts under a "forensic accounting program" that has been running for 18 months, in an effort to recoup tens of millions of dollars from suppliers by the end of December.
Suppliers are receiving bills from Woolworths, claiming they have charged the supermarket the wrong amount, or supplied an incorrect quantity of a product.
In my case, I have received an invoice for thousands of dollars dating back from 2010," said one supplier, who did not want to be identified.
"How am I meant to recheck the details of an order from four or five years ago? I questioned it, but I am being pressured to pay."
The revelations follow a tough month for the supermarket industry.
Last week, Fairfax Media revealed that Woolworths faced accusations of bullying from suppliers, who have been asked to pay millions to help to fund a discount war.
they must be feeling the pinch in their stupid discount war with Coles and Aldi.
26-12-2014 01:22 PM - edited 26-12-2014 01:24 PM
More like feeling the pinch over what the ACCC is going to make them pay for bullying suppliers like Coles was. Clearly they've decided to get in first.
I would also suggest that both Coles and Woolies probably get quite a lot of their discount 'losses' back from online shoppers. Every grocery item that isn't on special is more expensive to buy online than at the actual supermarket.
Had to laugh at Coles announcing they would be selling SodaStream syrups in their supermarkets. This has been tried many times before and it never lasts. They also only sell a fraction of the flavours available. Woolies is the same. The few flavours available are also available to online shoppers in my area. Just compared the prices - Coles are more expensive. Sorry Coles - will be sticking with Woolies on this one (and ordering direct from SodaStream for the rest since my preferred Mitre 10 closed down).
on 26-12-2014 01:29 PM
I like home made syrups in Soda Stream.
If the article speaks the truth it's a low down act by Woolworths, especially at Christmas.
on 26-12-2014 09:14 PM
There are more and more nasty revelations comming all the time about the behavior of both Coles and Woollies .As the man said how can you verify what happened years ago ..I doubt it is legal
on 26-12-2014 10:08 PM
Well one thing is for sure now. Suppliers to Woolies et al will be keeping very careful records for many years to come from now on.
It's bad PR for woolies. It makes them appear to be dishonest.
and perception is worth a whole lot in Business. They seem to be pinching pennies from their suppliers . . . and what does that suggest that they do to their customers?
on 27-12-2014 08:40 AM
What if...... after audits........ their suppliers do owe them money...... are they not entitled to sort that out?
on 27-12-2014 08:46 AM
@siggie-reported-by-alarmists wrote:What if...... after audits........ their suppliers do owe them money...... are they not entitled to sort that out?
Not necessarily. If they're charging farmers for their in store losses, no it's not fair. It sounds more like punishment for daring to challenge Woolies practices.
27-12-2014 11:16 AM - edited 27-12-2014 11:17 AM
@siggie-reported-by-alarmists wrote:What if...... after audits........ their suppliers do owe them money...... are they not entitled to sort that out?
No, they should have checks in place at the time of delivery.
Everyone else checks their deliveries, and queries within the 30 days or its NOT valid.
If you don't get the error srted, or at least identified, before the EOF records are collated then it's too bad.
I bet Woolworths wouldn't accept a bill from someone after such a long time.
on 27-12-2014 12:54 PM
First they wanted their suppliers to contribute tens of thousands $ for Jamie to advertise their products on TV. When that did not work, some clever little accountants thought up the idea of forensic accountancy to find so called improper payments to the suppliers.
If there were discrepancies of payments in the past, Woollies should go after the accountants that did the paperwork at that time, not trying to ruin the business of their suppliers.
What next?????
Big W is growing to big for its own good.
They own Bunnings and Dick Smith, and only God knows how many other businesses.
I never buy anything at Woolworth and never will.
I don't like greedy people that destroy others for the sake of mor profit.
Erica