The final retailer has now agreed to sign up to the GCA’s
voluntary commitment on forensic auditing.
Sainsbury’s will adhere to the commitment limiting the auditing
of suppliers’ trading for missed claims to no more than the
current and previous two financial years from 6 March 2022.
The commitment is reciprocal and suppliers must agree to limit
their own audit activity in return. Twelve of the thirteen
retailers regulated by the GCA are currently signatories to the
commitment.
It was first introduced in 2014 after the GCA survey identified
forensic auditing as the issue of most concern to suppliers.
Since then, the number of suppliers reporting having experienced
the issue has fallen although some concerns remain about how
audits are conducted and finalised.
GCA Mark White said: “In the early days of the GCA, the issue of
forensic auditing was a major concern for suppliers who were
being asked for large sums of money with the burden of proof
falling on them to show that any discrepancies were not valid
claims. For many suppliers having to piece together the audit
trail after long periods of time was a massive challenge.
“Legally, retailers and suppliers can make claims against one
another going back up to six years. However, the voluntary
commitment has played an important role in building more
constructive relationships in the groceries sector. I am
delighted that Sainsbury’s has seen the value of signing up to
the agreement.
“I will continue to monitor what suppliers report of their
experiences.”
