Online Giant Struggles with Fair Treatment of Suppliers
- Amazon ranks last in GCA’s supplier compliance rankings for the third consecutive year
- Only 66% of Amazon’s suppliers feel the company consistently or mostly follows fair treatment rules
- 13% of suppliers reported issues with Amazon, compared to 3% at Sainsbury’s (second worst)
- GCA can fine retailers up to 1% of their UK grocery turnover for non-compliance
- Amazon notes improvements in dispute resolution and dedicated account management support
- Company plans £40bn investment in the UK over three years, creating thousands of jobs
Amazon has once again come last in the Groceries Code Adjudicator’s (GCA) supplier compliance rankings, with over a third of its grocery suppliers reporting that it rarely or never complies with fair treatment rules. The GCA’s annual survey covers 14 major food retailers and found that only 66% of Amazon’s suppliers felt the company consistently or mostly followed the Groceries Code, compared to 91% at Lidl and an average of 93% across all retailers surveyed. Nearly 34% of suppliers said Amazon rarely or never complied with the code, while fewer than 9% did so at Lidl and just 2.25% at Waitrose, which topped the rankings. The GCA has the authority to fine retailers up to 1% of their UK grocery turnover for non-compliance. Amazon noted a 19-point increase year-on-year in suppliers saying it mostly or consistently follows the rules but expressed disappointment at the targeted investigation. An £40bn investment in the UK over three years, including new fulfilment centers and job creation, was announced.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Amazon’s ranking in the Groceries Code Adjudicator’s supplier compliance rankings and includes relevant details about other retailers for comparison. It also mentions the GCA’s authority to fine retailers and Amazon’s response to the investigation. However, it contains some opinionated statements from the GCA chief executive and an Amazon spokesperson.
Noise Level: 3
Noise Justification: The article provides relevant information about Amazon’s performance in the Groceries Code Adjudicator’s supplier compliance rankings and includes quotes from the GCA chief executive and an Amazon spokesperson. It also mentions Amazon’s investment plans for the UK. However, it could benefit from more analysis or context on the implications of these findings and how they may affect the industry.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Amazon’s performance in the Groceries Code Adjudicator’s supplier compliance rankings, which pertains to financial matters related to its grocery supply chain. However, it does not directly impact specific financial markets or companies beyond Amazon itself.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text and it’s not the main topic. The article discusses Amazon’s poor performance in the Groceries Code Adjudicator’s (GCA) supplier compliance rankings, but it does not qualify as an extreme event.
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