SUPPLIER DIVERSITY
PROCESS AND PROCEDURES






Purpose:
Develop and manage a program that ensures that Women and Minority vendors are afforded the opportunity to engage in business practices, mentorship and experience growth as a result of their relationship with Albertsons. We are committed to procuring products and services that meet the needs of our stores and customers we serve while supporting the W/MBE’s.

Product Introduction Flow:
  • Potential applicants will submit products as well as needed vendor information to Supplier Diversity team.
  • Supplier Diversity team will interview each vendor to ensure their products and company meets Albertsons standard product introduction criteria for vendors.
  • Supplier Diversity team will routinely meet with Corporate Merchant (member of Specialty/Ethnic Merchandising group) to review vendors and products (for Food or HBA products).
  • If the Supplier Diversity and the Ethnic Marketing teams are in agreement regarding the product, pricing and promotion the, vendors. will be collectively presented to the division merchandising directors monthly.
  • At this time (no more than 10 items/vendors will be shown) all information regarding the vendors will be presented along with our recommendation. HBC/GM products will be presented to Corporate Category Manager’s in Boise. If syndicated data is available it will be part of the presentation material.
  • Designated divisions representative will be required to answer by the third week of each month as to whether they have an interest in the product. At that time samples will be sent to the designated division category manager along with paperwork. Vendor will be given divisions contact name for follow up.
  • Divisions expressing interest in the products will be required to respond to the Supplier Diversity team outlining specific stores targeted products that will be slotted and implementation. Supplier Diversity team will communicate this information to the vendor.
  • Supplier Diversity and the Ethnic Marketing teams will work with the vendor to develop a promotional plan to ensure success of the product launch.
  • Division Category manager, vendor and Supplier Diversity team will agree to the sales expectations (per store average) for each product along with a determined margin. This will be done on a product by product basis depending on category and like items.
  • The items will be tracked for a minimum of six months (using Micro strategy reporting program) to determine if the products have potential and this information will be recapped to the vendor and the category manager at 3 months then again at 6 months. At either of those times if the product is performing at less than agreed upon sales volumes then the vendor will be expected to assist in selling the product to the consumer aggressively (either by deal activity or demo programs) to increase movement. At the end of 6 months the category managers and the Supplier Diversity team will review the product to determine if the product needs additional time or will be discontinued.

Vendor Expectations:
  • Must be a certified Women and/or Minority owned company with the 51% ownership of day to day operations.
  • The product and vendor will be judged on quality, distribution capability, packaging, promotion, uniqueness and pricing.
  • Vendor must have a clear idea of where product fits into market.
  • Products will be presented with a regional approach however, we will recommend to all divisions during our presentation.
  • Vendor must support their product with at least 4 (four) reduced cost promotions per year i.e. Off Invoice, BOGO, TPR’s etc.
  • We will require W/MBE’s to disclose their annual sales statement in order to qualify for our sliding scale of charges.
  • Sliding scale of charges:
  • Fewer than 1 million total revenues – no demo charge, no co-op and no new item set-up fee.
  • 1 million to 5 million – sliding scale of full charges by divisions – 1 million (20%), 2 million (40%), 3 million (60%), 4 million (80%), over 5 million full divisional charge.
  • Vendors will be expected to promote their products with demos to include; products, equipment, signing and live demonstration.
  • Vendor must maintain sales increase consistent with overall category growth.