asdf - Supply Management

asdf

9 November 2015

Sounds like madness? Please let me explain. Since the first investigation into the groceries market by the Competition Commission in 2001 the writing has been on the wall.

That same year the Supermarket Code of Practice was introduced and largely ignored. Roll forward 14 years and we now have a set of rules known as the The Groceries (Supply Chain Practices) Market Investigation Order 2009, and within that the Groceries Supply Code of Practice, known as GSCOP, that by law lays down a set of rules about how major UK supermarkets can treat their suppliers.

The problem is that 76 per cent of suppliers don’t understand the rules and are saying that even if they did, they wouldn't use them away for fear of retribution. This leaves us with the best way to use the GSCOP code is not to use the GSCOP code, but how?

The first step is for a supplier to understand the rules and secondly to declare that you understand the code. The are two alternatives to this approach:

1.Be oblivious to the code and assume that it is a "supermarket thing" and hope that your buyer is playing by the rules, or;

2. Understand the code and use the code - maybe to make a complaint. Your confidentiality is assured by the Groceries Code Adjudicator, but there is a risk.

Better to take option three: Understand the code and declare that you understand the code. Declaring that you understand the code follows best practise for negotiation according to Forbes.com in their article, "Don't be a Deal KILLER! Negotiate in SMARTnership".

Declaring that you understand the code is a bold move, but what it states more is "we both know the rules" and "let’s play by the rules" to avoid anyone getting caught out.

The easiest way to declare that you understand the rules is to join ‘GSCOP Aware Association’. An Association created to help Suppliers, particularly Account Managers, to be able to share that they understand the Code. The Association requires that you complete an online assessment on GSCOP to prove that you understand the Code and then, if you pass (many are estimated not to) you will be logged as a member of GSCOP Aware and given your membership number embedded on the GSCOP Aware logo.

Declaring that you understand the Code is a bold move, but what it states more is ‘we both know the rules’ and ‘let’s play by the rules’ to avoid anyone getting caught-out. The easiest way to declare that you understand the rules is to join ‘GSCOP Aware Association’. An Association created to help Suppliers, particularly Account Managers, to be able to share that they understand the Code. The Association requires that you complete an online assessment on GSCOP to prove that you understand the Code and then, if you pass (many are estimated not to) you will be logged as a member of GSCOP Aware and given your membership number embedded on the GSCOP Aware logo.

 

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