Date:         Tue, 20 Jun 2000 20:12:48 +0200
Subject:      losses in supermarket
From: Manfred Fehr [mailto:fehrsilva@mailcity.com]

 Jacky Foo, USP-Samoa wrote:
>In Table 4
>(http://www.ias.unu.edu/proceedings/icibs/ic-mfa/manfred/paper.htlm), the
>average losses recorded in Nov 98 and April 99 for an above average size
>supermarket in Brazil, was 11.94 %, 6.97 % or an average of 8.76 %.
>
>To Manfred and co-authors:
>did you analyse the proportions according to :
>- spoilage upon delivery of goods
>- spoilage due to mishandling
>- spoilage due to slow sales

No, we do not have this discrimination. Our figures refer to the total
spoilage, and as was said in the section entitled
Facing the Mangement Challenge, the supermarket administration has learned
the lesson from our research. Material balances are now done on reception and
sales. If this idea becomes standard practice, then the above discrimination
of spoilage localization will be defined as a consequence.

>I have no experience in the fruit and vegetable market but I believe spoilage
>is also due to the need to maintain a constant supply by the supermarket
>regardless of the demand. In the Apia fruit and vegetable market, the absence
>of an item seems to be an acceptable event as some fruits are seasonal.

This is true for Brazil as well. People accept the absence of seasonal fruits
such as strawberries without complaint. As for the rest, in this global
world, if the price is right, anything is available at any time of the year.
I have lived in Canada where I used to search the supermarkets for tropical
fruits. My experience is that they do a surprising job of offering items not
locally grown. Depending on the type of fruit, though, some delicate items
such as caqui or carambola, lie on the shelves and do not look very inviting.
If the stores buy them inspite of this, they must make profit on them
somehow. I have no idea about their accounting procedures.

>I again ask the question in the context of losses in supermarkets .......are
>we cultivating a lifestyle where losses in supermarkets is something that is
>unavoidable because they must always have a supply in excess !

Yes, I think we do. Unfortunately, the consumer pays the price of it. The
reason behind our research into this matter is that we believe we can reduce
the spoilage to a strict minimum. To do away with it sounds utopical.

You bet.
Manfred