How do vendors and supermarkets work together? -

I was wondering if anyone knew exactly how vendors work with supermarkets. For example, does a supermarket have to give the vendors the money upfront and are returned any money for products not sold? In other words, would a company like Pepsi stock the shelves with its products of a Foodtown after getting paid by Foodtown and then return any money to Foodtown for products that were not sold? Please excuse my ignorance on this. I was just always curious about the whole vendor thing.

I worked in a wholesale business for many years.The supermarket does not pay upfront but will pay on a 30-day account. Some fresh foods wholesalers can expect payment on 15-day accounts but may be subjected to spoilings returns.Wholesale products resellers (Vendors) must provide the goods where specified in the agreement to provide goods, or possibly incur fines by supermarkets for late deliveries. Fines can be as high as $500 per day for every day the delivery is late.A Vendor does not provide a refund on goods returned, just a credit on the next order. Vendors must stipulate this in the agreement before goods are provided otherwise cash refunds may be expected.Vendors must also provide a faulty goods agreement because of Policies within stores is money back guarantee, they will need to be able to return faulty goods to Vendors. Vendors may not be able to provide a faulty goods credit but may offer a repair service instead.If a product is deemed faulty and unsuitable for retail, the Vendor will have to suffer the return of product and delivery return cost.I m not familiar with Pepsi or Coke drinks but I assume the same applies as stated above.

Thank you very much, Mister Super Hero! That was a very lucid and insightful answer!! Thanks again!!!!!!!!!!!!! Report Abuse