Asda has moved to reassure suppliers and regulators that it is stepping up efforts to comply with the Groceries Supply Code of Practice after admitting that its Project Future transformation programme has put strain on commercial relationships.
In its latest compliance report, the supermarket said it was “doubling down” on problems that have long attracted criticism from suppliers, including late payments, unexpected delistings and unreliable forecasting. The company said d...
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edicated working groups had been set up across the business to review how it deals with suppliers and to identify where practice needs to improve.
The retailer has been under growing pressure on this front. It has faced 50 alleged breaches of the code over the past two years and slipped to 11th place out of 14 in the Groceries Code Adjudicator’s latest compliance table, according to The Grocer. That marked a further sign of deteriorating supplier confidence at a time when the regulator has already reported more complaints across the sector.
The problems have been linked in part to Asda’s long-running Project Future overhaul, which involved separating its IT systems from former owner Walmart. Asda acknowledged that the disruption from that process had a “notable impact” on sales and performance, while also saying the transition had been completed and that payment processes and forecasting accuracy were improving.
The company said it had increased training for finance staff during 2025 and tightened internal delisting procedures. It also said 190 new and existing buying colleagues across Asda and IPL had received bespoke, scenario-based GSCOP training, supported by guidance built into its new commercial strategy materials.
A spokesman for Asda said the business submits an annual compliance report to both the CMA and the Groceries Code Adjudicator to set out its performance against the code, and insisted the number of reportable supplier incidents was flat year on year despite the difficulties of the systems transition. The company also pointed to its new Supplier Charter, launched last October by chief commercial officer Darren Blackhurst, as a framework for improving supplier relations over the longer term.
The latest intervention comes after The Grocer reported that suppliers and the Adjudicator had raised concerns in February about retailers’ growing use of artificial intelligence in forecasting, arguing that it had not always improved accuracy and in some cases had worsened the position for suppliers. Asda’s own report suggests the retailer now accepts that better systems alone are not enough unless they are matched by tighter processes and clearer communication.
Elsewhere, Asda has been seeking to reset its wider supplier strategy, describing suppliers as partners for growth and promising more regular engagement, including conferences and dedicated feedback channels. That effort comes against the backdrop of a difficult trading period and a broader turnaround programme, with the retailer trying to stabilise operations while rebuilding trust across its supply chain.
Source: Noah Wire Services
