Shufersal announced to suppliers that the logistics center fee will increase by 1.5%

Shufersal announced to suppliers that the logistics center fee will increase by 1.5% in about two weeks, and the big question is whether the suppliers will pass this on to us, the consumers? These are stewarding and distribution services that the chain provides to its suppliers (manufacturers and importers of food products, home cleaning and personal cleaning). The reason: an increase in transportation costs.
In other networks, the suppliers make distribution and sorting for themselves, so if there is an increase in the cost of transportation, it is only with them. In Shufersal, the chain apparently carries a burden with them. At the same time, it also gives it more control over the supplier and it will remove suppliers from the branches if they refuse to go up in price. It should be noted that the chain has already removed a number of small suppliers from its branches. It has now unequivocally informed suppliers that if they continue to supply the network it will see in it evidence that they have agreed to upload.
It is argued that the commission varies from supplier to supplier and is usually less than 10%. The percentage increase in price is calculated according to the increase in costs for each provider separately for the service he receives from the network. It was also argued that the chain would not incur commissions for about four years, and that it is now forced to do so due to a "significant increase in inputs", including transportation and storage, and especially in light of the 26% increase in fuel prices. The move comes a moment after former Shufersal CEO Itzik Aberkhan returned to the company as chairman.
"Shufersal has taken out small suppliers, is gradually making its private label products more expensive and is pushing us against the wall because it will be very difficult for us not to sell in the largest chain in Israel," explains one of the suppliers. "At the same time, we have all raised or raised prices for consumers because there is no choice. Otherwise we will not. The costs of logistics and raw materials have indeed risen. This is not a whim. We and, of course, Shufersal have increased prices in every possible way."