This year’s Grocery Code Adjudicator (GCA) survey showed little improvement, with its numbers remaining fairly static vs the year prior.
Among the results, the survey revealed that many suppliers are still unsure or unwilling to report an issue to the Adjudicator, at 36% and 6% respectively.
Concern over a retailer finding out and there being a subsequent fallout remains the key reasoning, at 38%. This is despite a high awareness of a ‘no retaliation’ promise.
“I understand the nervousness that exists in the sector about raising issues with me or to a retailer’s CCO [Code Compliance Officer]. I want to emphasise that however you decide to raise your issue your confidentiality will be protected,” Adjudicator Mark White reassured delegates at this year’s GCA conference.
Top issues experienced by suppliers
Payment delays remain the top issue. Suppliers cited inadequate processes around solving invoice discrepancies promptly as their biggest pain point, although this has seen a marginal decrease of four percentage points since 2024 (now at 17%).
Incurring significant costs due to inaccurate forecasting by retailers (17%) took second place - this also witnessed a very slight decrease from the year before. Delisting without notice came in third – but this nudged up by one percentage point (at 15%).
Retailers with most code complaints
A total of 10% of suppliers have raised an issue with a retailer in the last year, with Amazon holding its ranking as the retailer with the most raised against it. Saying this, Amazon has seen a positive jump in the last 12 months, with its net improvement score moving up by 1.62%.
Meanwhile, Asda took a big hit, with its net score falling by 21.34%. Still, the discounter remains overall compliant with the Code.
Delisting felt keenly by small companies
As part of their research, the analysts at YouGov – who conduct the GCA survey – speak to a range of suppliers (28 in total) to gain further insight.
These conversations revealed how vulnerable smaller suppliers feel, with many using words such as “challenging” and “volatile” to describe the industry.
Painting an overall picture of how suppliers were feeling, Lois Harmer, research manager at YouGov, said smaller suppliers are feeling much more vulnerable to delisting.
“Retailers are felt to be increasingly focused on rationalisation and consolidation, streamlining their ranges and cutting underperforming suppliers. For larger suppliers this is a manageable challenge but for smaller micro suppliers, it does feel like a very real threat,” she explained.
Lack of communication
Whilst there were glimmers of positive process, with some suppliers reporting retailers are showing better awareness of the Code and there are more opportunities for more innovation and collaboration, others flagged high buyer turnover as problematic.
“Suppliers aren’t necessarily told when a buyer leaves,” added Harmer, who noted similar trends in buyer churn-out last year.
Poor communication was highlighted as a key issue in many regards, with smaller suppliers referencing little opportunity for airtime with suppliers and a lack of face-to-face meetings making relationships feel “more transactional”.
Digital issues
When it came to payments, both human error and digital processes had the finger pointed at them. However, it was the latter that took the lion’s share of the blame.
Suggested improvements included retailers ensuring they have a clear escalation process with an easily accessible, dedicated contact or team for payment issues.
Direct human contact was also mentioned as a way to reduce misunderstandings, increase efficiency and speed up the process.
In a similar vein, suppliers noted unreliable forecasts as an issue – with most attributing it to poor computer-generated forecasts.
This inaccurate forecasting often results in ‘erratic’ retailer behaviour which can create cost and planning issues for suppliers. This is particularly damaging to those operating in fresh produce and imported goods who are at the mercy of shorter shelf lives.
The findings revealed that suppliers often feel the onus is placed on them to deal with unsold stock or to supply stock at short notice.
Suggestions for improvement included giving suppliers free access to sales data, implementing a weekly order commitment, and updating portals for a more streamlined forecast process.
Reporting an issue
The GCA has a statutory duty to protect suppliers’ confidentiality. And while CCOs work for the retailers, they are independent from the buying teams and treat any conversation with a supplier in the strictest of confidence. Revealing information around a supplier’s identity will not be given without permission.
You can find CCO contact details on the GCA website.
