Walmart-owned Asda is to pay hundreds of thousands of pounds back to suppliers, after breaching the grocery supply code of practice that governs fair dealing. UK industry regulator, the Groceries Code Adjudicator, found Adsa charged disproportionate upfront fees, not necessarily those agreed in supplier contracts, and ousted some suppliers at short notice if they refused to oblige. The GCA report added that the project renewal strategy had been designed by a consultancy commissioned by Asda to achieve cost savings, and it was clear that “the role of the third party consultants was closely bound up with the issues raised”, as they had been able to achieve bonuses based on the amount of money they were able to save Asda. It also made last-minute demands for cuts in cost prices on the back of its project renewal plan designed to cut costs, which it developed with consultancy firm Bain & Company. The supermarket giant has been ordered by a judge to repay £2.3m plus legal costs from last year as part of an ongoing investigation into alleged breaches of the Grocers Code.
Walmart-owned Asda is to pay hundreds of thousands of pounds back to suppliers, after breaching the grocery supply code of practice that governs fair dealing. UK industry regulator, the Groceries Code Adjudicator, found Adsa charged disproportionate upfront fees, not necessarily those agreed in supplier contracts, and ousted some suppliers at short notice if they refused to oblige. It also made last-minute demands for cuts in cost prices on the back of its project renewal plan designed to cut costs, which it developed with consultancy firm Bain & Company. The supermarket giant has been ordered by a judge to repay £2.3m plus legal costs from last year as part of an ongoing investigation into alleged breaches of the Grocers Code.