Kroger ORAD Update 4/13/2018
Kroger: New Penalties for Case Fill Rate, On-Time Delivery
Kroger’s commitment to improving customers’ shopping experience has prompted the grocery giant to take steps to ensure orders are delivered on time and completely full. In a letter to suppliers Friday, Kroger announced implementation of Case Fill Rate requirement and a change to fines for On-Time Delivery compliance – both will take effect June 1.
Case Fill Rate: Kroger wants Purchase Orders (POs) to be filled at 100%. Starting out any PO filled at less than 95% will be subject to a fee of 3% of the value of the missing items.
For example: an order filled at 94% will be result in a 3% fine on the missing items – or the 6% the supplier was short of the 100% Case Fill Rate.
On-Time Delivery: fines for POs failing to meet the Original Requested Arrival Date (ORAD) will be fined at 3% of the invoice amount – a change from the lesser of $500 per PO, or 10% of invoice.
Kroger notes they will continue allowing a 1-day grace period before assessing fines “for the time being.”
CaseStack’s Kroger Freight Consolidation can help suppliers minimize their exposure to fines, in part because our relationship means we’re able to get delivery appointments needed to meet ORAD.
Contact us to learn more about how we can help with your Kroger shipments.
