The Groceries Code Adjudicator (GCA) has today launched its tenth annual survey that examines how suppliers are being treated by the 14 retailers covered by the Groceries Supply Code of Practice (GSCOP).
The survey is one of the most important ways for suppliers to confidentially tell the Adjudicator, Mark White, about their experiences dealing with the retailers. The survey, conducted by YouGov, covers a wide range of themes, and the responses are expected to help the GCA understand the ongoing impact of inflation and other issues affecting suppliers.
In 2022, more than 2,500 respondents helped the GCA understand supplier concerns, including how retailers had responded to CPI requests, which was the most raised issue in the last five years. Perceived Code-compliance also fell last year compared to the previous survey. Responses to the 2023 survey will show whether suppliers believe retailers have improved or whether compliance has worsened again during the tough trading conditions.
Amazon was designated as a retailer in March 2022, so this is also the first opportunity for its suppliers to provide feedback on the online retailer’s performance through the survey.
“Since my last survey, inflation has continued to affect the entire groceries sector, straining the relationships between retailers and suppliers. I am concerned about how the retailers are responding to CPI requests and whether this pressure is causing other issues to arise,” said Mark White.
“I want to hear from as many suppliers as possible so I can understand the ongoing impact of inflation and other issues affecting suppliers. This will help me to work with the retailers to ensure they are treating all suppliers fairly and legally.”
In the 2022 survey, more than a quarter of the direct suppliers said they had experienced a request for a cost price increase (CPI) being refused or the implementation being unreasonably delayed. It was the most raised issue in the last five GCA surveys.
Suppliers highlighted other issues, including around de-listing (16% of suppliers), forecasting errors (18%) and delays in payments (12%).
The number of Code-related issues rose, with only 47% of suppliers facing no Code-issues compared to 56% in 2021. Across the nine surveys run by the GCA, this was the first time that Code-related issues had risen.
This year’s survey is open for six weeks, closing on 26 February, with the results published later in 2023. The GCA has commissioned YouGov to conduct anonymous follow-up interviews with a select group of respondents to explore supplier concerns in more detail. Suppliers are able to sign up to these interviews at the end of the survey.
NAM Implications:
- Mark White is trying to help.
- He simply needs the facts.
- Just one click away.
- Over to you…
