TO become a supplier for the two biggest retailers in the country, Pick n Pay and Shoprite, one should ensure they have fully registered businesses, be ready for safety audits and have a bank account.
These and more are the requirements the two retail giants need, their lead buyers explained during presentations before the Namibia Trade Forum and other stakeholders, last month, as part of the buy local, grow local capacity-building workshop.
However, the informality of the country’s economy, especially in sectors such as agriculture with small-scale producers, and lack of awareness regarding the barcode, food audit and business registration, could disqualify many budding manufacturers and producers.
Beyond awareness is the decentralisation of critical services of vital bodies such as the Namibia Standards Institution (NSI), Business and Intellectual Property Authority, and the country’s BarCode Centre, which are in Windhoek or at the coast.
In their presentation, Pick n Pay said they require potential suppliers to be registered and to comply with all legal and industry-related regulations such as VAT and tax registrations and bank confirmation letters, while those intending to supply food to Pick n Pay must fulfil food safety audit requirements.
The retailer also explained that manufactured products’ ingredients must be traceable and clearly noted on the packaging label.
The manufacturers should also get “a global location number and barcode” for their products.
The suppliers should further have a supply chain plan for delivery, logistics and distribution that they submit to Pick n Pay.
The potential suppliers will have to register on the Pick n Pay portal once listed to register their company.
Pick n Pay also revealed that it has an early stage supplier incubator programme that includes business growth support that emerging manufacturers and producers can take advantage of.
The incubation support includes skills training, routine mentorship and help with compliance, such as health and safety audits for budding suppliers.
Under the programme, early stage suppliers get preferential trading terms (low rebate structure, seven-day payment terms and inclusion in advertising at a low rate). It also includes access to a letter of intent for financing for the budding suppliers.
Shoprite head buyer Patricia Hangula explained that those who have to supply their stores have to contact the company to book. Thereafter, Hangula and her team reviews the supplier’s details and contacts them if they are a good fit.
A good fit to Shoprite commands creativity, retail suitable and the product should be in demand, according to Hangula.
The manufacturer’s packaging and branding are a big deal for one to access Shoprite shelves, Hangula said.
Like Pick n Pay, Hangula said the retailer seeks food safety approval and transparency in the supply chain. In addition, good manufacturing practices (GMP) or prerequisite programmes for all entry-level and small suppliers need to be shown by doing their first food safety audits to ensure compliance with the laws.
Hangula highlighted that local suppliers’ GMP/prerequisite programmes need to be in line with South African national standards (SANS) 10049.
The Namibian awaits an answer from the NSI if they have a localised national standard.
A prerequisite programme defines the “basic conditions and activities that are necessary to maintain a hygienic environment through the food chain, while GMP describes the methods, equipment, facilities and controls for producing processed food”.
The retailer said it accepts various food safety audits and certificates from different bodies that include retailer food safety audits, abattoir audits, storage and distribution audits and Italian professional wine accreditation.
Besides the food safety audits, Shoprite further requires a potential supplier to submit a bank letter not older than three months, a founding statement of the company, dummy invoices, a tax certificate and an application form.
Email: erastus@namibian.com.na
