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Why GSCOP should matter to you

21st May 2018

The Groceries Supply Code of Practice (GSCOP) epitomises the ‘rules of the game’ for major retailers and their direct suppliers. GSCOP safeguards suppliers from unfair retailer practice and it is therefore extremely important to be aware of the key points. Christine Tacon, the UK Grocery Code Adjudicator, has urged suppliers to engage in training in order to better understand the Code.

The code is 7 pages long and sits in section 5 of a 19-page document called ‘The Groceries (Supply Chain Practices) Market Investigation Order’.

Our training programme, launched in 2018, breaks down the Code and has generated high interest from F&D companies, so we intend to expand it further. To date over 50 people from 15 businesses have now been trained.

The course aims to enable the UK to lead the EU in the creation of best practice for the grocery industry supply.

Our GSCOP training programme covers the following areas:

What the supplier should have:

Product Technical Specifications, Terms and Conditions, Written Supply Agreement

What rules the retailer should adhere to:

• Supply Chain: The retailer can no longer significantly change any part of the supply chain which affects a supplier without giving reasonable notice
• Payment Terms: The retailer must pay the invoices on time and in full
• Marketing Costs: A supplier cannot be asked for payments for artwork and marketing costs unless specifically agreed in writing in the supply agreement
• Shrinkage & Waste: A retailer cannot ask for payments for shrinkage or waste
• Forecasting Errors: The retailer must fully compensate a supplier for any costs incurred through forecasting errors
• Delisting: A supplier should only be delisted for genuine commercial reasons

• Plus, many more:
• Customer Complaints
• Listings and Positioning
• Promotions,
• Third Party Goods & Services

It is vital that suppliers protect themselves and ensure that the retailer-supplier relationship is on a level playing field.

Written by Stuart Sadler.

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