DO I QUALIFY?
Are you retail ready? Do you have an innovative product?
Do you and your business have what it takes?
Do you want to supply your product into Pick n Pay?
HOW TO GET STARTED
The Enterprise and Supplier Development Division has three specific aims:
- Increase local procurement by accelerating small suppliers into the supply chain.
- Improve and develop great quality and range of local products at competitive prices.
- Provide small producers a national platform by increasing access to national and regional markets.
- Pick n Pay’s Enterprise and Supplier Development Programme (ESD) assists selected diverse and ethical small businesses to enter the retail market by putting their products in front of our customers.
- The Pick n Pay Enterprise and Supplier Development Programme provides a platform for small businesses to become successful and sustainable suppliers to the retail sector.
- We help our customers lead healthy and sustainable lives by providing them with access to safe, healthy and sustainable products, and information with which to make informed choices about what they eat and how they live.
- SUPPORT: Empower and build entrepreneurs and small suppliers by providing them with mentorship and business development support.
- SCALE: Develop strategies and programmes with the aim to increase productivity and delivery of SME’s within the Pick n Pay supply chain.
- SUSTAIN: Promote and facilitate all aspects of small supplier development within Pick n Pay.
SME Selection Process:
1. SME Contacts SME Department
Concept and proposal screening
2. Food Safety (if applicable)
FACTSA, Entecom, Intertek Food Safety and technical
3. Pre Assessment and Due Diligence
Gap assessment (National or Own Brand)
4. Pricing and Costing Exercise
Supplier is referred to Buyer (National) or Product Developer (Own Brand)
5. Logistics and Delivery Model
Meeting with the SME team and Supply Chain team
6. Merchandising Model
7. Systems Training EDI Portal
Ensure supplier is attending regular EDI workshops
8. Store List
9. Ongoing mentorship and training attendance required by vendor
Product gap assessment
Food Audit assessment
Listing and costing
Packaging and merchandising solutions
Delivery into stores
The first step to join the Pick n Pay Enterprise and Supplier Development Scheme is to ensure that you have a registered business which is in operation. You will also need to comply with all the relevant legal and industry related regulations pertaining to the product or service. Consider all aspects of your operation and ensure you obtain all required licenses and permits as you develop your product, purchase equipment and operate on your premises.
Ensure that your comply with the industry specific sector laws and regulations such as annual registration of CIPC Annual returns, health and safety, food safety, ethical employment, (skills development levy) and labour practices (UIF and PAYE).
Tax Compliance : If your turnover exceeds the legally prescribed threshold, currently R1 million, you will be obligated to register for VAT and will have to register with the South African Revenue Services (SARS).
The second step is to develop an understanding of the category that your product falls into as well as Pick n Pay's merchandising strategy. Your product will usually fall into the following category which are: Groceries and General Merchandise; Bakery; Butchery; fresh Convenience (chilled or frozen ready to eat products); Clothing; Private Brands; Perishables and Fresh Produce.
If supplying food products: You will need to comply with Pick n Pay's mandatory minimum food safety requirements. You will also need to understand how your product fits into Pick n Pay's merchandising strategy.
If supplying services, then you would fall into the category Pick n Pay calls Corporate Procurement, comprising Fixtures and fittings for stores, distribution centres and offices such as shelving, refrigeration and furniture; Consumables: products such as packaging and stationery; and Service Contracts: such as security, cleaners and trolley porters.
Corporate Procurement: If supplying services, you will be considered as a business-to-business service provider and would fall into a category we call Corporate Procurement (CP).
Develop your service.
In this step, you will need to determine how much capital, cash flow, time and resources you will need to successfully manage and operate your business. Create a solid business plan that includes cash flow projections and financials. Ensure that your business plan details these requirements and if you are unsure, seek advice from a professional such as an account or bookkeeper.
Note: When necessary, seek the professional guidance of a registered accountant or bookkeeper.
Before giving the green-light for a supplier's product to be made available on Pick n Pay shelves, the supplier must adhere to very strict, product, legal and labelling requirements, which differ from one product category to another.
All ingredients and raw materials used in manufacturing your products will be required to have full traceability of the source, quality and shelf life and full ingredients statement. Where necessary a Certificate of Authenticity will be required and any ingredients claiming to be organic or free range must have the appropriate Certificates of Declaration.
Note: All ingredients and raw materials used in manufacturing your products will be required to have full traceability of the source, quality, shelf life and full ingredients statement.
If the relevant Pick n Pay category buyer is satisfied and indicates that they would like to list your food product, your facility will be required to meet the minimum food safety standards and undergo a Food Safety Audit. This audit includes the following key requirements; requirements for safe food production, quality management systems, factory capabilities and supply chain management.
The Foodstuffs Cosmetics’ and Disinfectants Act covers labelling, ingredient declarations the use of additives, preservatives and colourants etc.
Food Safety Audits:
Ensure that you comply with the basic and minimum food safety standards so that you are retail ready i.e. ready to supply Pick n Pay.
In South Africa, various laws govern the food safety aspects of a product. If you are producing a product with agricultural raw materials you need to be familiar with the various regulations of the Department of Agriculture. All Pick n Pay listed products must be produced in a facility that has been independently audited by an independent third party auditing company. The auditing process is managed and conducted in line with International Standards Organisation (ISO) ISO 17021 and ISO 19011 requirements, which ensures auditor competence and impartiality. The audit standards are based on the standards required by the Consumer Goods Forum and are available from the Global Food Safety Initiative Guidance Document. Note that the requirements vary if supplying own brand products or Pick n Pay Private label products.
Once you are listed as a small supplier, you would need to register your company on the Pick n Pay Portal. This is a necessary and important step towards establishing a business relationship with us. The Pick n Pay Portal is a free and efficient service for all Pick n Pay suppliers. The portal manages suppliers trading documents, article information and cost prices. The Pick n Pay Portal is a web-based interface between Pick n Pay and small suppliers (which we call vendors) who supply us with products. The portal enables you to manage your business with Pick n Pay successfully and assists with the process of planning and tracking your business transactions. You will need to have your Value Added Tax (VAT) number, your Global Location Number (GLN) and product barcode ready.
In this step, you will need to decide how you will manage your logistics, warehousing distribution and supply chain. The specific category buyer will be able to guide and advise you on delivery and logistics. If you meet our internal criteria, you will be required to deliver directly to our centralised distribution centers (DC’s) in Cape Town and Johannesburg. Deliveries will be direct to store in Kwa Zulu Natal and Eastern Cape until the DC’s have been built in these regions.
Small suppliers who service our franchise stores can also opt to deliver directly to the Pick n Pay store in question.