Supermarket buyers have been “hiding behind their computer screens” rather than co-operating with suppliers on ways to tackle the cost of living crisis, according to a damning report by the Groceries Code Adjudicator.
Mark White today accused inexperienced and under-trained buyers of failing to develop personal relationships with suppliers and instead hitting them with “unreasonable” demands that were contributing to inaccurate forecasts and food waste.
The Adjudicator also said suppliers felt that a lack of collaboration had seen delists from range reviews lead to empty shelves, which was bad for both parties as well as consumers.
The report is based on a “deep dive” into issues raised by the annual GCA/YouGov survey in June, which showed relations between suppliers and retailers were breaking down because of the avalanche of cost price increase (CPI) requests amid the cost of living crisis.
In a speech at the GCA conference, White said he was urging supermarkets to think again about the training and experience given to buyers.
“Suppliers have found these buyers have little knowledge of the category or the supplier in question,” he said.
“Despite the relative return to normality following the pandemic, buyers don’t seem to be visiting the farm, the factory, or the warehouse where they can better understand the challenges faced by their suppliers.
“They are also less willing to pick up the phone, or are happy to sit behind email, further undermining their ability to develop these relationships.”
White also accused supermarkets of making “unreasonable demands and irrelevant marketing propositions” and said he was particularly concerned about buyers not understanding the peaks and troughs of a product cycle.
“These can lead to inaccurate forecasts and either lost revenue or increased wastage for both the supplier and retailer.”
The GCA survey showed for the first time relations between retailers and suppliers had gone backwards in the past year, with disputes over inflation the main source of fallout.
Last week, The Grocer revealed experts expected a new flood of CPI requests to hit retailers in October, as suppliers continue to face huge pressures on costs.
While the Adjudicator cannot intervene on issues of price, he can step in if he believes suppliers have been unfairly delisted as a result.
The report found most suppliers were reporting “lengthy delays” after submitting CPI requests with supermarkets employing a variety of “delay tactics”.
However, the report found discounters Aldi and Lidl were less guilty of such tactics.
“This appeared to be common across the big five, whilst discount retailers have reportedly dealt with CPIs in a more supportive and collaborative way,” said the report.
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