The formation of the Groceries Code Adjudicator (GCA) five years ago has undoubtedly changed the relationship between suppliers and supermarkets for the better.
It has brought into focus the way in which supermarkets engage with their suppliers and has established clear and transparent ground rules that all retailers must abide by.
A formalised process of suppliers providing feedback and sharing their experiences in the annual Groceries Supply Code of Practice (GSCoP) survey – which reports on grocery suppliers’ dealings with supermarkets – has increased trust and transparency. The very fact that supermarkets have made senior appointments to ensure GSCoP compliance shows they are committed to the code.
The GCA has been effective in highlighting poor practices across the sector, which has resulted in a number of retailers changing the way they work with suppliers. This in turn has increased trust across the wider industry, as seen through a year-on-year fall in complaints to the regulator. Despite this, the GCA’s second formal investigation is ongoing, which shows there is still more work to be done.
As well as safeguarding suppliers, it has drawn industry attention to hugely important issues such as food waste, particularly in international supply chains. It also has a crucial role to play in speaking up for, and protecting, suppliers in a changing and evolving market.
For us, fair treatment is all about clear commitments and delivering on promises. For example, we never let our growers make financial commitments without prior agreement on cost, specifications and volumes. Never using ‘buy-one-get-one-free’ offers or multibuy promotions also keeps our sales volumes and buying patterns stable, and once terms have been agreed we do not change them or ask for additional incentives.
Close communication also helps us find ways to become even easier to do business with, for example, in 2017 we shortened our payment terms for smaller suppliers to 14 days for transactions up to £250,000.
We also place additional orders whenever possible if a supplier is facing a flush of crop due to seasonal weather fluctuations. All of this has helped us increase our proportion of British-sourced fresh produce to 45 per cent, which is above the industry average.
This is all part of a bigger picture for us. We have worked with some of our growers since we first entered the UK market over 20 years ago. These long-term relationships enable us to maintain our efficient supply chain which, in turn, allows us to provide quality products to our customers at the lowest prices in the UK.
While our own behaviour towards suppliers has not changed significantly since the GCA was formed, the wider industry has clearly altered the way it works with growers for the better, and we will continue to support it as a force for good in our sector.
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