Below, you can find an overview of what was discussed during the December meetings the GCA held with retailers ‘Code Compliance Officers’, focussing on her ‘Top 5 Issues’:
(you can read the full document here)
Delay in payments (specifically drop and drive), Delay in payments (more generally)
The GCA had now had detailed responses from those retailers whose progress on tackling delay in payments arising from drop and drive was causing concern and monitoring ongoing supplier experience of this. Results will be published in the next annual survey to see what impact retailer initiatives have had on addressing the issue.
Delay in payments (more generally)
The GCA discussed current practices claimed by suppliers to exceed the agreed payment terms.
The GCA also noted and discussed some ongoing, recurring themes in supplier concerns surrounding delays in payments, such as; unilateral deductions, resolution times, depot practices, not paying on time, and haulier issues.
It was reiterated to all retailers that the GCA considered that they needed to continue to take action to minimise the risk of breaches of the Code arising and that she had not closed the door to further regulatory action.
Forecasting
The GCA noted and discussed some ongoing, recurring themes in supplier concerns surrounding forecasting, including: communication, responsibility and compensation.
She referred CCOs to her published best practice statement on forecasting and indicated that from the survey information received, it appeared that some retailers might not be following it and that there were a number of operational and supply chain practices that retailers needed to consider more closely in order to ensure they were operating in the spirit of the best practice statement. She would be writing to each retailer about this soon
Promotions
The GCA reported and discussed some ongoing, recurring themes in supplier concerns surrounding promotions, including issues surrounding:
- access to adequate sales data
- retailers sticking to agreed promotional commitments, periods and timelines
- effects upon other products
- care needed for ‘one off’ activities where there is limited outlets for goods to be sold elsewhere
Payments for better positioning of goods
The GCA reminded retailers that she would monitor retailer progress on this issue in February 2018, and would be writing to retailers about this in January.
In the meantime, the GCA would highlight whether positioning of producers on retailer websites (for sale online or in-store) would require any amendment to the existing text of the Code, in her next newsletter to see if suppliers had any information or views they would like to submit to the GCA about it.
Pay to Stay
The GCA noted that the issue of pay to stay appeared to be of less concern to suppliers now. However, during the recent survey on promotions, some suppliers reported they felt pressured to agree to a promotion in order to keep their business with a retailer. The GCA noted that those suppliers saw this effectively as a ‘pay to stay’ arrangement, and reminded retailers that they should always provide clear communication between to the supplier about what any money paid is for to avoid confusion.
Any other business:
The GCA also discussed: recruitment, awareness raising activity, and concessions in store and licence agreements.