Redbridge Produce & Flowers is in the process of introducing rebate payments across its entire wholesale supply base.
The move, common in the retail sector, is believed to the first of its kind in the wholesale sector and has prompted fears that other companies may follow.
The rebate has come under fire from a number of suppliers, who question its relevance to a wholesale sector relationship.
However, Graeme Hinchley, md of RP&F, said: “This is part of Redbridge’s continual process of improving quality throughout the company, to ensure it is serving its customers with the product they require.”
The company said the concept of rebates was not new, as it has had rebate arrangements in place with major suppliers for many years, however, now rebates will be rolled out across the entire supply base.
Hinchley said: “The majority of RP&F’s current supply base already meet the new terms and conditions, however not all suppliers are completely meeting the requirements and we are working with them to help them upgrade.
“Some suppliers will be unable to fully comply with the requirements, and this will release volume to those suppliers who can comply.
“This provides an enormous opportunity for our suppliers to reach a wide customer base, from high street retail, to multiples, to schools, foodservice and catering.
Hinchley added: “Redbridge sees this as an opportunity to share the benefits of economies of scale; indeed a number of our category partners saw volume growth in excess of 40 per cent in 2004.”
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