Forecasting statement for our GSCOP suppliers

To be able to offer our customers the best possible availability of our products, it is important that we work with our suppliers to generate quality forecasts in a consistent and timely way - ensuring that there are ‘no surprises’ across the supply chain. We are committed to complying with the Groceries Supply Code of Practice (GSCOP) at all times.

 

Our principles for forecasting are set out below:

 

  • Forecasting will be collaborative between us and our suppliers
  • We will ensure there is effective and timely planning for sales promotions
  • We will undertake proactive monitoring of forecast accuracy – tracking forecast volumes against actual volumes and review exceptions when appropriate
  • We will provide compensation for forecasting errors caused by us in appropriate circumstances

 

How are our forecasts prepared?

 

  • EPOS sales forecasts are prepared by item and item-store, using historical data, commercial and market insight and internal activity plans and policies. EPOS sales forecasts are shared via Retail Link up to 52 weeks in advance.
  • Order forecasts are prepared by item-DC or item-store, using demand forecasts and inventory plans. Order forecasts are shared via Retail Link (Order Log) a minimum of 2 weeks in advance.
  • Forecasts are indicative and for planning purposes. You should only rely on our Purchase orders.
  • Purchase orders will confirm the actual items, volume and dates that stock is required. 
  • Our supply planners undertake forecast planning and preparation activities on an ongoing basis to review, adjust and refine these forecasts as inputs change / new information becomes available, e.g. recent sales trends, weather forecasts, competitor activity etc.

 

What do we expect from you?

 

  • Generating demand and order forecasts is a collaborative process.  We expect that our suppliers undertake their own forecasting activities to anticipate what will be sold to customers (EPOS), and what our suppliers expect us to order to fulfil these sales.
  • Suppliers should regularly and proactively review our forecasting data - available via Retail Link – and compare this to their forecasts.
  • Where and when suppliers identify Asda forecasts that they believe may be inaccurate / exceptional, they should engage the relevant supply colleague to discuss and agree changes.
  • Where suppliers agree with the forecasts shared by us via Retail Link, no action is required.
  • If you are uncertain how to access your customer demand or order forecasts in Retail Link, please engage your Asda supply contact.

 

Compensation

 

Compensation will be assessed on a case by case basis.  Compensation will be considered where:

  • there has been a clear failure to collaborate during the forecasting process and/or
  • we have failed to take account of clear advice from a supplier
  • and a supplier has incurred significant detrimental costs as a result

 

Escalation

 

The following colleagues / teams are here to work with you to develop quality, timely forecasts and to help if you have any concerns:

 

  • Supply Analyst – for queries relating to your customer demand and/or order forecasts (accessed via Retail Link) forecasts data / delivery dates.
  • Supply Chain Manager - where your Supply Analyst has been unable to resolve a query to your satisfaction
  • Buyer / Senior Buyer – for queries relating to ranging, store distribution, pricing, sales and promotional plans

 

If you are not sure who any of these contacts are then please get in touch with asdasupplierengagement@asda.co.uk

 

For any GSCOP related queries please contact Tim Belser, Code Compliance Officer

codecomplianceofficer@asda.co.uk

 

Definitions

 

Item

Unique product line

Forecasting

Is the practice of predicting which, how much and of what, products customers will buy in store (Demand Forecast) and how many and of what products we will order from our suppliers (Order Forecast).  Forecasting is typically done using historical sales data, enriched by additional inputs such as weather predictions and consumer trends.   We prepare and communicate forecasts, including those relating to promotions, with the understanding that forecasts are created for planning purposes and do not create any legally binding obligations.

EPOS

Electronic Point-of-Sale

Order

Quantity requested by Asda to a Supplier via a Purchase Order

Collaboration

Asda and suppliers working in partnership to forecast future demand and order volumes, including jointly assessing and anticipating the impact of promotions to increase forecast accuracy.  Collaboration includes the timely communication of known changes that may impact forecasts. As part of this way of working suppliers are given the opportunity to raise any challenges or obstacles for discussion.