News (including the Drop and Drive Workgroup)

As Christine Tacon's tenure as Groceries Code Adjudicator comes to a close, we are proud to share the success of the Drop & Drive Claims Workgroup which after five years of collaboration has delivered an 85% reduction in unsubstantiated claims through process improvement plus numerous positive impacts on workload and job satisfaction too.

For any chilled suppliers not benefiting from this, read on, as you should be benefiting from this too.

As we enter our 9^th week of lockdown some suppliers are gradually reducing the rationalisation of their ranges, while those on the core growth categories (those that feature heavily in cooking, snacking and home baking) are still fully rationalised due to the continued high volumes, although demand is generally starting to settle down.

Large retailers demand greater visibility of supply but still struggle to understand their own changing demand requirements, as the new normal begins to stabilise

Thank you to Andy Coe from Retail Insight UK who joined us for the 5^th virtual covid19 collaboration group meeting last week to provide his personal insights on how retailers are reacting to the pandemic.

Thank you to all those suppliers who contributed again this week as we start to progress from crisis to planning to establish the rules of the new norm. Supplier stocks situation are beginning to recover for many lines. However, with ‘The Big Trolley Shop’ returning and near-doubled on-line shopping from store, promotions on the key growth categories are simply encouraging cupboard-stocking on the products and brands on offer, which are already selling 20-30% more than normal.

Thank you for the continued support this week and welcome PepsiCo, LRS and Oatly to the group. Chilled suppliers reported that they are seeing some demand stabilisation on the key volume lines, although volumes are still higher than previous. Retailers are actively collaborating on forecasts and resuming planning routines for promotions and range reviews.

We are all aware of the intensely critical role our NHS and frontline workers are playing during this period of uncertainty and at this week’s virtual meeting, one supplier reported on how they are trying to help support our care workers to help keep spirits up.

A further 10 suppliers joined our regular contributors this week where our discussions embraced the issues surrounding employee wellbeing as well as the usual supply and demand challenges.

With panic buying over and availability much improved, the grocery sector is starting to settle into a ‘new normal’ with social distancing smoothing shopping patterns through the day and week, and promoting top-up rather than big trolley shops.

In response to the Covid-19 pandemic Simply Supply Chain have organised virtual weekly supplier meetings to enable fellow Chilled and Ambient suppliers to share their challenges, frustrations, opportunities and successes with like-minded peers, to develop and share best-practice and understand common practice on the issues arising from managing the impact of COVID-19, within the supply chain (Customer Fulfillment). 

Cash is king, especially for small suppliers during this current coronavirus crisis. Retailers are swimming in cash as a result of the massive increase in sales due to the outbreak. Fueled by panic-buying, and with the £3bn rate holiday to come, they can afford and need to be generous to the smallest suppliers, who are the most vulnerable during any extended period of uncertainty.