In this article, learn about:
How Ahold Delhaize handles its deductions
Requirements for packing and shipping products to Ahold Delhaize
Contact information for Ahold Delhaize suppliers
Koninklijke Ahold Delhaize N.V., commonly known as Ahold Delhaize, is a Belgian multinational retail and wholesale company. It employs over 400,000 people at more than 7,500 stores in 9 countries, including over 2,000 stores in the United States.
If a supplier wants to break in to this strong market, they will have to follow Ahold Delhaize’s vendor compliance guidelines, to ensure a continued relationship and a minimum of costly deductions.
This article covers the major requirements of Ahold Delhaize’s vendor guidelines, as well as company contact information.
How Does Ahold Delhaize Handle Deductions?
There are a few unique aspects to how Ahold Delhaize handles deductions. First of all, the company states that deductions are not to exceed $400 for each valid compliance violation.
Ahold Delhaize also places a cap on the dollar total of all deductions throughout a single fiscal year. To determine the cap, Ahold Delhaize combines the sums of two categories of deductions: warehouse violations and vendor cuts violations.
Warehouse violations refer to all compliance issues recorded at a distribution center, such as damaged products, missing bills of lading (BOLs), or improperly marked cases. All warehouse violations are processed on a weekly basis and invoiced to the vendor by Ahold Delhaize’s ADUSAP VIC team. The following types of vendors are exempt from all warehouse violations, except for safety standards:
ADvantage Program partners (also not exempt from no-show violations and failure to provide Advanced Ship Notice (EDI 856) violations)
Vendors with less than $1.5 million in cost of goods sold (COGS) from the prior fiscal year
Private label vendors
Pharmacy vendors
Tobacco product suppliers
Vendor cuts violations, on the other hand, refer to short shipped product, i.e. when the quantity of a shipment is less than the quantity the retailer ordered. Ahold Delhaize defines vendor cuts violations as any shipments which contain 97% or less of the amount of product ordered. The following types of suppliers are exempt from vendor cuts violations:
ADvantage Program partners
Vendors with less than $1.5 million in COGS from the previous fiscal year
Private label suppliers
Pharmacy vendors
Tobacco suppliers
Fresh produce vendors selling price look-up (PLU) items, which typically consists of fresh produce with a PLU sticker
Vendors with short lead-time purchase orders (POs), defined as POs with less than 24 hours of lead time, or POs issued with less than the lead time agreed to by the vendor and Ahold Delhaize
The cap that Ahold Delhaize places on the sum of all warehouse violations and vendor cuts violations is from the supplier’s COGS and is calculated each January based on the previous fiscal year.
For vendors with COGS of less than $1.5 million, the ceiling for chargebacks is $1,200 per PO per day; in addition, deductions are not to exceed 40% of the total invoice cost. For all other vendors, chargebacks are capped at $4,800 per PO per day, with no restrictions on the percentage of invoice cost.
Packaging
Ahold Delhaize requires that its packaging be resilient enough to withstand typical shipping and storage conditions. Additionally, Ahold Delhaize only accepts full cartons, and requires that product size and flavor match the purchase order exactly. Each shipment must contain two packing slips including an itemized list of all merchandise, as well as:
Purchase order number
Company item code number
Item description, including pack and size
A UPC code, vendor item code, or PLU code
Quantity shipped by item
Net shipment weight
Case weight for each case shipped
Traceable/trackable date, which refers to the manufacturer-supplied date that is used to determine salability of product
Ahold Delhaize requires that both the packing slips are sealed in an envelope, which is attached to the BOL or freight receipt. Each PO must have a separate BOL or freight receipt, and multiple POs per BOL is not allowed. The only items that are exempt from packing slips are shipments of produce, flowers, or seafood.
Product Identification
It’s important for efficient receiving and distribution that suppliers’ products are easily identifiable. Ahold Delhaize requires all markings on its cases to be bold, clear, and legible. Cartons must contain the following identification information:
Item description as it appears on the PO, including pack and size
Case pack and size
UPC number
Traceable/trackable date
Sell-by-date markings, which must be consistent on both the inside and outside of the shipping carton
Net weight in pounds and sell or pack dates, which must be displayed in 3/4" block print on two sides of each shipping carton
Vendor name
For private label product only: The item code number must be displayed in 3/4" block print on two sides of each shipping carton
Required country of origin information.
Bill of Lading Requirements
Ahold Delhaize requires that its vendors include the following information in the BOL or freight receipt:
Gross and net product weights
PO number
Number of cartons shipped
The words "Delivery appointment required"
Required pre-cooling temperature for the trailer
Required temperature of product during loading
Whether the driver or carrier is required to unload
Notification of multiple different sell-by dates for any single product line
Driver name and number
Carrier name
Shipper number or load number
Trailer number
Pick-up date
Seal number(s)
Piece count or pallet count, as applicable
Any special requirements for the products
Product country of origin where required
The words "Carrier: Do not cut shrinkage, do not break down pallet until advised to do so by consignee upon delivery."
The words "Merchandise tendered in a sorted and segregated manner."
Time of departure from consigner warehouse, for seafood items under Hazard Analysis and Critical Control Points (HACCP) regulations
For frozen and refrigerated loads, the vendor is required to list the correct pre-cooling and set temperatures on the BOL or freight receipt. Spoilage or product damage due to incorrect temperature settings may result in refusal of the shipment and/or a deduction to the vendor for the cost of the goods and any expenses associated with disposal of the spoiled products.
After loading, all trailers used to deliver goods to Ahold Delhaize facilities must be sealed by vendor employees. The seal number should be noted on the BOL or freight receipt, then confirmed by the vendor and carrier. Any trailers that arrive to Ahold Delhaize facilities without seals, or with broken seals, may be refused and subject to deductions.
Related Reading: What is a Bill of Lading?
Shipping Requirements with Ahold Delhaize
Any shipment arriving more than 30 minutes past its scheduled appointment time is considered late and may be subject to deductions. Any shipment that arrives before the designated time and date will be refused. If a shipment is refused, a new delivery appointment must be made with the appropriate scheduling department. All POs must be shipped in full; partial shipments may result in deductions.
Ahold Delhaize requires that all its products are shipped according to its TI/HI specifications, with no products overhanging any side of the pallet. If a supplier is unsure as to the TI/HI specifications for its products, the company or its buyer can provide that information.
Ahold Delhaize takes food safety seriously and requires its vendors to take precautions to ensure the safety, quality, and wholesomeness of its products. Ahold Delhaize reserves the right to reject any shipments for food safety reasons, such as evidence of cross contamination, pests, leaks, odors, debris, or poor condition of the trailer.
Make sure to always:
Palletize food products on top of non-food products
Palletize ready-to-eat food products on top of raw food products
Palletize dry produce over wet or iced produce
Palletize frozen foods only with other frozen foods
Make sure to never:
Ship caustic chemicals overtop of food products or human care products
Palletize seafood over other food products without barrier protection/shrouding
Ship inorganic products on top of organic merchandise
Commingle food products with any of the items listed below:
Pesticides
Poisons
Fertilizers
Batteries
Tires
Motor oils or motor fluids
Any substance that would generate an odor to contaminate food products
Contact Information
For any questions about Ahold Delhaize’s vendor guide and requirements, contact the company through the ADUSAP Vendor Inbound Compliance portal.
To schedule all delivery appointments, access the Manhattan Associates web portal. To access this portal, both the username and password should be “PREPAID.” You can add an appointment through the menu on the top left corner of the screen.
For any issues with prepaid carriers, email Ahold Delhaize at appointments@adusaprocurement.com. Make sure that you include a screenshot of any error messages you received, in order to help Ahold Delhaize diagnose and troubleshoot the issue.
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