One in five direct suppliers to retailers state they experienced delayed payments in 2018, which is down from over a third in 2014.
The change is being heralded as progress thanks to the Grocery Code Adjudicator (GCA), who published her annual report this week.
Despite improved relations in the food sector, the GCA said: “Delay in payments remained the number one concern highlighted by suppliers in the 2018 survey, as it was in 2017.
“I hear that not all retailers had adequate systems and processes in place fully to demonstrate compliance with the GCA’s interpretation of the Code.”
Suppliers continue to complain about the persistence of unilateral deductions and the practice of holding back entire invoices while one element is queried, as well as too much time taken to resolve disputes.
However, the report stated that the impact of the GCA was positive as fewer suppliers complained about paying for better shelf placement, subsidising promotions and poor forecasting of sales.
The current adjudicator, Christine Tacon, is in the last year of her term. The report stated she was paid between £75,000 and £80,000 for the part-time role and accrued pension benefits of £31,000 in the last 12 months.
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