As farmers and producers continue to battle unprecedented levels of on farm inflation it is unsurprising to see that 91% of suppliers requested at least one cost price increase (CPI) in the previous 12 months.
CPI and invoice discrepancies
CPI requests ranked top as the most experienced issue in the last 12 months with 28% of respondents saying they had a request refusal or unreasonable delays in agreeing or implementing an CPI.
Following that, the second highest issue experienced by suppliers was an increase in problems with invoice discrepancies due to inadequate processes and procedures in place.
Suppliers urged to report issues
As inflation starts to ease, GCA Mark White said: “I will also be watching closely to see how retailers respond to any changing patterns of inflation and how they manage cost price decreases.
"I urge suppliers to confidentially report all code-related issues they experience so I can raise them confidentially with retailers and ensure necessary action is taken swiftly.”
Results show overall retailer compliance with the code has improved from 47% to 49% this year, with 11 out of the 13 retailers improving their compliance scores.
Big changes in retailer rankings
“I urge suppliers to confidentially report all code-related issues they experience so I can raise them confidentially with retailers and ensure necessary action is taken swiftly.”
GCA Mark White
However, when it comes to individual performance, we have seen some of the biggest changes in terms of retailer rankings. For the first time, M&S took the top spot in 2023 with a record high score of 99% closely followed by Waitrose.
The story wasn’t so positive for Aldi and Tesco. After nearly eight years at the top Aldi moved to 7th place and Tesco to 6th. Being two of the largest retailers in the UK market, it is concerning to see such a substantial change in code compliance.
Changes in retailer behaviour
NFU Chief Food Business Relationships Adviser, Amy Fry, said: “The dramatic changes in retailer rankings paints a stark reality of the changes in retail behaviour as inflation puts pressures on supply chain relationships.
"We will continue to build on conversations with both the GCA and our retail contacts as the supply chain continues to face unprecedented challenges.”
“The dramatic changes in retailer rankings paints a stark reality of the changes in retail behaviour as inflation puts pressures on supply chain relationships.”
Amy Fry, NFU Chief Food Business Relationships Adviser