Protocol for Enrollment in the
Food Industry ECR Unsaleables Program
Declaration of commitment to the joint industry ECR Unsaleables Committee recommendations for dealing with unsaleables.
a) Compliance with respective accountabilities for unsaleables as published by the Unsaleables Advisory Committee (UAC).
b) Commitment to the industry recommendation on declining benchmarks:
i) 15 items per $10,000 of dry grocery department sales (including HABA and GM)
effective November 1, 1998
ii) 12 items per $10,000 of dry grocery department sales (including HABA and GM)
effective March 1, 1999
iii) Ongoing industry benchmarks as developed during 1998 - 1999.
c) Commitment to accepting payment for unsaleables based on a distributor’s performance factor versus the industry benchmark.
Distributor’s performing at or below the industry benchmark will receive 100% of claims for product and handling cost.
Distributor’s performing above the industry benchmark will receive less than 100% of claims for product and handling cost, at a rate based on their performance factor versus the industry benchmark.
d) Commitment to follow recommended industry Best Practices for reducing unsaleables.
e) Commitment to calculate or have calculated by an independent third party, a performance factor versus the industry benchmark by distributor on a period by period basis, and to accept the requirements of an audit if requested.
f) Commitment to use the UAC recommended method of calculation of the performance factor. This calculation method is subject to review and revision by the UAC.
g) Commitment to use a reclamation service provider that is willing and able to provide the information to meet the requirements of the industry recommendations for unsaleables.
h) Providing that all of the requirements of the industry recommendations for unsaleables are met, distributors committing to the industry recommendations for unsaleables will be paid a handling rate of 56 cents per item for dry grocery and 63 cents per item for HABA and general merchandise items, regardless of the type of reclamation service provider used. Distributors will be compensated 37 cents per item for dry grocery and 44 cents per item for HABA and general merchandise items for product reclaimed from the distribution centre.
i) Commitment to abide by the UAC review of handling costs and revised handling rates which will be effective January 1, 1999. It is expected that handling rates will decrease based on research and knowledge gained through the roll-out experience.
ii) Commitment to provide signed audited statements semi-annually to the UAC (the number of audits will be subject to revision by the UAC, but will be no more than two per year). The auditor will use the User’s Guide as a template for the audit.
iii) Commitment to provide reasonable unrestricted access by an independent third party in order for the UAC and ECR Unsaleables Committee to review the industry benchmark and to set new benchmarks.
i) Commitment to abide by the UAC’s recommendations for national roll-out of the program across Canada.
j) Commitment to follow the Unsaleables Advisory Committee's recommendations regarding charities that will be the recipients of the unsaleables.
Acceptance of the above principles herein indicated
by the signature of the Chief Executive Officer of the Organization
Organization (Distributor Chain, or Banner)
Chief Executive Officer or Officer of the Corporation (please print, name and title)
Signature Date
To enroll in the ECR Unsaleables Program, indicate your commitment to the Program by signing the Protocol for Enrollment in the Food Industry ECR Unsaleables Program, and send it to:
ECR Unsaleables Committee
c/o Canadian Council of Grocery Distributors
121 Bloor Street East, 12th floor
Toronto, Ontario
M4W 3M5
and copied to
Food and Consumer Products Manufacturers of Canada
Attn: Customer Policy Department
885 Don Mills Road, Suite 301
Don Mills, Ontario M3C 1V9
SIGNED PROTOCOLS RECEIVED
As of February 16, 1999