Coles Pushing With Restructure of Field Agents

Supermarket chain store Coles is planning to overhaul the relationship between its suppliers and their field agents or “reps” in 1500 Cole outlets, including its liquor stores and convenience stores.

The restructuring is in light of the company’s decision last month, where Coles had been planning on coming up with its own panel of agents and cut fees with regards negotiation with Coles’ suppliers. The new system will also require these agents to have their own computerized system, as well as pay rebates back to Coles.

The company says that this will deliver a more efficient service than before.

According to one insider, “Up to 30 field reps visit our stores in a day. There is a significant difference in the ways of working of the field reps of each of our suppliers and this causes disruption to Coles store operations. To resolve all these issues, Coles is exploring options for creating a panel of third-party field force companies that could be used by our suppliers.”

These agents or reps, in behalf of suppliers, normally negotiate with Cole’s supermarket store managers regarding promotions, displays and store demonstrations, among others, of the brands they carry. They charge a 5% fee from the sales.

With Coles restructuring, however, the fees in itself will be lowered significantly, and will be turned to agent rebates.

About 20,000 independent agents work among Coles’ many outlets, and news of this change comes as a threat and shock to these agents. Some fear they may lose their jobs.

Last month, a representative for these agents met with Coles’ bigwigs, but nothing seems to have been negotiated as the supermarket chain is bent on pushing with the changes.