That’s the overall takeout from the latest numbers circulated by the Groceries Code Adjudicator in the UK this week. Whilst the numbers quoted only provide a snapshot of what’s going on at any given time in any given year, it’s clear that the scores on the doors’ for 2024 indicate fewer issues between Suppliers and Retailers in the UK at a time when market competitiveness is at a peak.
What learnings can we take from the numbers?
Well, first of all, there’s the clear indication that Codes work! Scores measured were all improved than the previous report, across Code issues, Data, Process & response to CPIs were reduced by 50% vs the report last year. For markets like Canada who are at the early stages of launching their Code, there should be optimism and expectation that it will work and act as a meaningful ‘conscience’ for good behaviour and business practices between suppliers and retailers. For Australia, who already have a Code in place but are ‘sharpening its teeth’ , shows the impact of a code with tight rules, measures & understood well by both retailers & suppliers, all has a positive impact.
Secondly, the UK’s Code Compliance scores should be a call to action for all suppliers, but especially those in Canada – you need to be ready to embrace and work with a Code of Conduct. This means training up your organisation and ‘getting fit’ for the Code. Your journey starts now. Reviewing current trading terms, supported with your commercial organisation understanding what the Code can do to harness the right behaviours (and equally importantly, what it cannot), then you are set fair to start the journey and work WITH retailers rather than AGAINST them.
And finally, give yourself an operational framework to help your organisation navigate the complexities of the Code, its implications and reading the situations that inevitably arise with retailers in our everyday interactions. With our global experience of Grocery Codes of Conduct at Sentinel, we are committed to helping clients work with the code in a consistent and sustainable way; we work with their Commercial teams to show them how to RECOGNISE a potential breech, REACT to disarm it and then to RESTORE the mood in such a way as to build a collaborative approach. This is the key to working with the Code as a business enabler and facilitator, rather than as a potential stick to penalise bad behaviour.
Richard Reed
Managing Director
