Supermarket buyers ‘hiding behind screens’ in price negotiations, says GCA
Supermarket buyers have been “hiding behind computer screens” rather than working with suppliers on prices and ways to tackle the cost of living crisis, according to a report by the Groceries Code Adjudicator (GCA).
Mark White, the Adjudicator and highly commercial legal expert, said today that buyers are hitting suppliers with “unreasonable” demands that were leading to inaccurate price jumps and food waste.
He stated this could be as a result of buyers failing to develop personal relationships with suppliers – and a lack of collaboration – had lead to empty shelves, which was bad for both parties as well as consumers.
The report is based on issues raised by a YouGov survey in June, which showed relations between suppliers and retailers were breaking down because of gigantic 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.”
“These can lead to inaccurate forecasts and either lost revenue or increased wastage for both the supplier and retailer.”
