UK supermarket fines for late delivery

   Waitrose Limited, a division of the British retailer and worker co-operative the John Lewis Partnership, has begun fining small delivery businesses in its supply chain £60 (US$95) for every late delivery to its chain of supermarkets in the UK.
   Waitrose has more than 240 branches across the United Kingdom and secures just above 4 percent of the country’s market, and the company said that it has enforced fines because missed deliveries are hurting its business.
   The system has caused some major tension between shippers and the grocery chain. While most refused to comment, some suppliers have reached out anonymously to the press calling the fines “an absolute abuse of power” and “unfair profiteering.”
   Waitrose made it clear that these £60 (US$95) fines weren’t a profitable venture, but rather an encouragement tool for suppliers to honor contracts and a way to mitigate its losses from missed sales.
   The fines are going to be a big wakeup call as companies invest in innovative systems and find partners that allow multiple orders to be consolidated into a single truck. This type of offering is becoming a large trend for shippers and their third-party logistics partners regardless of size, and such a fining system reminds that smarter ways to ship still need to ensure delivery times are met.