Supplier Pushes For Sharpened Industry Performance

August 19, 2005

Kiwifruit Supplier Pushes For Sharpened Industry Performance

Kiwifruit alliance G6 Kiwi is pushing for sharpened industry performance, with recognition for suppliers that perform well and penalties for those that don't.

G6 Kiwi general manager Linda Mills says there is concern within the industry that some suppliers are meeting kiwifruit orders, while others are not fulfilling requirements.

The company will make a submission to the industry-driven Compensation and Equalisation Project in agreement with its option of 'sharpening the commercial drivers in the supply contract so suppliers are paid for performance for delivery in full, on time and in specification with penalties being imposed for non-delivery'.

Mills says G6 Kiwi is frustrated with the general managers of offshore markets coming to New Zealand and making sweeping statements about 'the industry' not performing or delivering.

"They see it at an industry level, but it's not actually the whole industry it's only parts of it," Mills says.

"Some suppliers are performing well and are actually compensating for those who aren't. Enough is enough. We need to sharpen up performance criteria in supplier contracts so there is recognition of those performing and some sort of penalties on those that don't.

"Suppliers that are right on track shouldn't be tarred with the same brush of those that aren't."

Mills says suppliers also need to "step up to the mark" for the sake of their credibility.

"Suppliers are wanting to take on more and more responsibility within industry supply chain management and are demanding performance improvement - there is a current concept development for a supply chain management structure involving greater input from suppliers. However, suppliers also need to step up to the performance mark – looking internally as well as externally for performance improvement."

G6 Kiwi chairman Alister Hawkey agrees: "Zespri is looking at bringing in some initiatives around delivery and performance and G6 Kiwi will be supporting those through the negotiation of the 2006 contracts.

"As an industry I think we need to strongly focus on performance and delivery. We need to keep our eye on the ball by doing the basics and doing them right - maintaining the cornerstones of our industry."

ENDS

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