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Wal-Mart strikes again.
This time, the 800-pound, Bentonville, Ark.-based behemoth, noted for its directives to suppliers in areas like RFID, data synchronization and EDI, has made its presence felt in the vital, but often overlooked, area of unsaleables: products whose condition, age, or other defect precludes their sale to consumers.
What Wal-Mart Stores did in this area was to require all of its suppliers to put a "Best if used by" date on all food products; the deadline was early 2004. Industry sources said Wal-Mart made the move to ensure consumers receive the freshest products, but it could result in more unsaleable expired product.
Moreover, most of these manufacturers have responded by putting the dates on all of their products, including those sent to the supermarket channel.
According to one supplier, 75% of all food products already use "Best if used by," or open code, dating, including perishable and shelf-stable products. In addition, the other 25%, including some cookies, crackers and candies, are in the process of adopting the codes.
Suppliers and food retailers are concerned about the move to "Best if used by" dating on most products. In the past, manufacturers placed such dates on all perishables, but did not put them on all shelf-stable products, particularly those with long shelf lives that turn fairly quickly, such as bottled juices.
"It may be the right thing for the consumer, but it may not be the right thing for suppliers," said Ted Lechner, reverse distribution coordinator for H.E. Butt Grocery, San Antonio. Lechner is concerned that vendors, anticipating a higher rate of unsaleables, will put too much product into the supply chain.
That's a reasonable assumption by suppliers, he noted, since "if you're a consumer, you're not likely to reach in the back of the shelf and get the one that's about to go out of date." Food suppliers agreed. "Best-if-used-by dating will usually result in higher unsaleables, driven by an increase in expired product," said Gary Piwko, director of remarketing and unsaleables at Kellogg, Battle Creek, Mich.
"In the short term, you put yourself at some risk of taking on additional unsaleables," added Dee Biggs, director of demand fulfillment for Welch's, Concord, Mass. "It has brought one more layer of information relative to...