Challenges affecting suppliers

By Mark White.

In September, hundreds of suppliers attended the Groceries Code Adjudicator’s (GCA’s) annual conference; the first with in-person attendees since the pandemic and coinciding with our tenth birthday.

The GCA is the UK regulator which ensures that the largest grocery retailers treat their direct suppliers lawfully and fairly and comply with the Groceries Supply Code of Practice (the Code). Since its creation, the GCA has gone from regulating 10 to 14 retailers, and at my conference I was pleased to hear again about the real difference it has made for suppliers over the last decade.

The GCA’s annual surveys show this difference clearly. In 2014, 79% of suppliers reported having at least one Code related issue. This had drastically reduced to 36% in 2023. At the same time, the grocery retailers’ average scores for Code compliance rose from 73% in 2014 to 92% in 2023.

I was keen, as always, to reassure suppliers that the GCA is not resting on its laurels and continues to push the retailers to improve their treatment of all suppliers. I want suppliers to contact me if you are facing a Code issue. I treat all contacts from suppliers with upmost confidentiality.

Conference attendees discussed challenges affecting suppliers of all types and sizes, including how grocery retailers are handling both requests for cost price increases and cost price decreases, the impact of inexperienced buyers on suppliers and an increase in range reviews and de-lists.

I was very pleased to welcome many fruit growers in person and online, and was delighted to welcome Ali Capper, Executive Chairman, British Apples & Pears to take part in a panel session on how grocery suppliers and retailers can build enduring relationships despite the difficult trading conditions.

I have heard clearly what Ali and other fruit growers said about how they have been impacted by volatility and their need, in response, for the retailers to plan for the next 10 years, not the next 1 to 3. Ali also highlighted the frustration caused by buyer turnover. I am absolutely determined to keep engaging all the retailers on this issue with a focus on getting them to retain their buyers in post for longer.

I also spoke at my conference about changes to some supply chain structures, especially in the fresh produce sector. I have noted some retailers either introducing or removing consolidators or buying desks which can either afford, or remove, the explicit protections of the Code to growers and producers.

I want to hear from suppliers affected by such changes, confidentially of course, about how they have been impacted. I want to properly understand how the retailers are explaining such a change and in giving plenty of notice before making any change.

I was grateful to all those who attended my conference either in person or online and for the opportunity to reiterate that I and the Code Compliance Officers (CCOs) at each of the retailers want to hear from suppliers about the issues they are facing. Where a supplier does speak to either the GCA or a CCO, their confidentiality is assured. Suppliers are also protected by the retailers’ commitment that there will be no negative consequences for raising an issue. Please do get in touch.