«Krasnoye & Beloye» limits supply volumes to protect expensive alcohol from the threat of destruction during UAV attacks

The «Krasnoye & Beloye» alcohol retail chain is reducing goods acceptance from suppliers to one third of a truckload at a time, so that stocks do not accumulate in warehouses and are not at risk of destruction during drone attacks. This is reported by «Kommersant» citing sources in the food market. The company confirmed that it is testing different approaches to reduce storage volumes and speed up delivery to stores. Suppliers are unhappy about rising logistics costs. The measure replaces a summer agreement that would have released the retailer from liability for goods destroyed during UAV attacks.

«Krasnoye & Beloye» limits supply volumes to protect expensive alcohol from the threat of destruction during UAV attacks

The key facts

  • «Krasnoye & Beloye» accepts no more than 1/3 of a truckload from suppliers at a time, so that stocks do not accumulate in warehouses
  • The company confirmed it is testing approaches to reduce storage and speed up delivery to stores
  • The measure replaces a summer supplementary agreement on releasing the retailer from liability for goods during UAV attacks, which the company withdrew after media publications

The chain limits the volumes of one-time deliveries

The Russian alcohol retail chain «Krasnoye & Beloye» is reducing goods acceptance from suppliers to 1/3 of a truckload at a time. The goal is to prevent stocks from accumulating in warehouses and being exposed to the threat of destruction during UAV attacks. This is reported by «Kommersant» citing sources in the food market.

Confirmation from the company and the suppliers' reaction

The retailer itself confirmed that it is testing different approaches to reduce the volume of product reserves stored in warehouses at any one time and to speed up delivery of goods to stores. According to «Kommersant», deliveries will have to be made more frequently, suppliers' logistics costs will rise, and this causes them discontent. The outlet notes that «Krasnoye & Beloye» is the only major retail chain in Russia that has decided to limit supply volumes; the article explains this by the fact that a lot of expensive alcohol is stored in the retailer's warehouses. «Kommersant» describes the company's logic as follows: «The task is to ensure that products do not remain in the distribution centre for long».

The measure came to replace a controversial agreement

According to the publication, the new measure was devised as a replacement for a supplementary agreement that «Krasnoye & Beloye» offered suppliers to sign last summer: the document released the retailer from liability for goods destroyed or damaged in warehouses during a UAV attack, air defence operations, or shell hits. After media publications, the company withdrew the agreement and promised to modify it taking the comments into account. Earlier, as the outlet notes, Russian entrepreneurs agreed to chip in for air defence systems.

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