Policy paper

GCA Forecasting and Promotions best practice statement

Statement of GCA understanding of best practice in relation to forecasting, under paragraph 10 of the Groceries Supply Code of Practice (the Code) and Promotions including taking due care when ordering for Promotions, under paragraphs 13 and 14 of the Code.


GCA Forecasting and Promotions best practice statement June 2018

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In 2015 the GCA reviewed the forecasting approach of the ten regulated retailers to assess their alignment with the Code. In March 2016 the GCA published a statement of best practice which retailers should work towards. It was found that retailers adopted a range of approaches, and used the word “forecast” in a variety of ways. Some made a clear distinction between a forecast and an order; others did not see forecasting as a discrete activity but rather, as an integral part of supply chain management, often proceeding close to real time; still others integrated forecasting into a joint business planning process that was documented alongside the Supply Agreement. Many suppliers do their own forecasting, some sharing this with the retailers they supply.

Following a review in March 2016 of retailer progress towards the statement of best practice and in light of continuing supplier feedback, the GCA decided to consider the issue again. The GCA also considered issues in relation to promotions.

Please refer to the attached statement for full details.

Published 25 June 2018