This report details the actions taken by Lidl Great Britain Limited to ensure ongoing compliance with the Groceries Supply Code of Practice (GSCOP), which came into force on 4th February 2010.

This document also gives account, for the Company’s last full financial year (FY 20/21), of any allegations or disputes that were raised by Suppliers, the level at which they were raised and resolved.

Actions undertaken prior to commencement of GCSOP:

In conjunction with external solicitors:

• All existing Terms and Conditions checked for compliance with the Code.
• Reference to GSCOP made in relation to all existing contracts.

Review of 2020-2021

In-house compliance measures:

Grocery Code Adjudicator (GCA) Visit 26.03.20:

Lidl GB invited the GCA again this year to speak privately with Lidl’s Chief Executive Officer, Chief Financial Officer and Chief Commercial Officer, and to present to Lidl GB’s senior buyers and key stakeholders from other supplier-facing departments. The visit was conducted remotely via video conference due to the Covid-19 outbreak. The meeting and presentation were well received and ensured Code compliance continues to have a high profile at Lidl GB. 

Separate introductory meetings have taken place between the new GCA, Mark White, and the CCO, the CFO, and CEO remotely via video conference between September and November 2020. 

The CCO is further planning on inviting the GCA to visit Lidl later in the year when Lidl will have moved Head Office locations.

Training:

The CCO worked to develop a GSCOP e-learning for Lidl’s Buying team with Lidl’s Learning & Development team and an external training development company. This launched on 01.09.2020 and replaced the face-to-face annual GSCOP refresher training. All Lidl buyers and buying coordinators (87 employees at the end of the reporting period) completed the e-learning in the months following the launch. The e-learning is also assigned to new starters in the Buying team.

The e-learning is complemented by quarterly ‘GSCOP Updates’ meetings, which the CCO introduced in November 2020, and which allow the CCO to share GCA news and guidance, inform the Buying team of any updates to internal GSCOP processes, and use the opportunity to review recent supplier complaints to ensure learnings can be drawn. 

Internal Review of Policies:

Over the past year, Lidl GB has undertaken the following actions: 

• Over the past year, Lidl GB has undertaken the following actions: 
• Launch of a GSCOP e-learning for Lidl’s Buying team. This will be reviewed and updated for the next refresher training period.
• Implementation of a comprehensive GSCOP audit as part of Lidl’s whole organisation approach to Code compliance. Internal GSCOP processes have been further strengthened as a result.
• Developed and launched a Supplier Information Pack to improve supplier understanding of Lidl’s ways of working.
• Following on from the previous year, there is continued focus on working with suppliers to reduce the number of price differences and quantity discrepancies. 
• Continued monitoring of Lidl GB’s payment performance (this process was first started in March 2018) and is now taking place more frequently every other month.

Disputes:

No disputes have been raised to the CCO under Articles 11(2) or 11(3) of the Groceries (Supply Chain Practices) Market Investigation Order 2009.

Listed below are the instances in which a supplier has escalated a concern that is within the scope of the Code or the Order:

• In six instances, a supplier concern was raised at level 1 and resolved at level 1 (concern raised with any other party in the business, typically the Buying team).
• In one instance, a supplier concern was raised at level 2 and resolved at level 1.
• In three instances, a supplier concern was raised at level 2 and resolved at level 2.
• One incident is reported as ongoing.
• No disputes have been escalated to level 3 (direct contact with CCO, formal dispute raised).
• No disputes have been escalated to level 4 (arbitration by GCA or other).

Sophie Wettlaufer

GSCOP Code Compliance Officer

Lidl GB Limited

Date: 30.06.21

Email: compliance@lidl.co.uk