Dear Client Partner,
It’s been brought to our attention that new policies & procedures for cost changes are being implemented across all Ahold brands that you should be aware of. The official Vendor Communication documents are attached, but we feel it’s important to over-communicate during this transition so that all parties’ expectations are aligned as we plan and prepare for cost changes in the next calendar year.
As detailed in the attached documents, your Category Manager, Category Analyst and Price & Promotional Analyst must be given 90-day notice prior to any cost changes. This 90-day period only begins once all of the following have been completed & correctly submitted:
- Completed Ahold USA Cost Change Form
- Completed Should Cost Form (must be completed w. your Category Mgr)
- A Letter on the Company Letter Head outlining the specific reason for the cost change.
Due to the comprehensive nature of the forms, it is our recommendation that we begin the cost change process approximately 5 months in advance of the desired cost change date. This should allow us to accommodate Ahold’s turnaround time to assist in completing the Should Cost form, as well as any unforeseen push-back from their end.
It’s also important to note that Ahold has been very vocal about resisting cost increases due to rises in transportation or freight costs. We understand that very may well be the cause, and encourage you to cite supporting indexes/economic trends in your Company letters, but just want you to be aware of the likelihood of a cost change being rejected, or negotiated down for this reason.
While it may be a challenge initially, we’re confident that the increased time and attentiveness given to our plans will help make this adjustment to their new process as smooth and seamless as possible. Please feel free to reach out with questions/concerns, and as always, thank you for your partnership.
Senior Vice President
RDD Associates, LLC
To download the PDF release of this post please click here: Client Communication – Ahold Cost Changes