The Groceries Supply Code of Practice (GSCOP) is supposedly so toothless that suppliers see it as commercial suicide to escalate a GSCOP dispute. However, in my view suppliers have been too quick to dismiss its potential.
supermarkets have reputations and brands to protect. This means they will give ‘compliance’ a high priority. If they are found in breach of a regulatory requirement they could find themselves in the headlines, with some unwanted consequences.
Supermarkets have refreshed their purchase terms, appointed GSCOP compliance officers, and carried out internal training of their buyers. A cynical supplier might dismiss those efforts, but it does mean that all buyers will be sensitive to the risk of non-compliance: they will not want to be ‘disowned’ by their employer.
With this in mind, what can you do if you are a supplier facing problems relating to a buyer?
Actually there are lots of ways you can tweak the tiger’s tail. Firstly you should casually highlight that you are familiar with the detail of GSCOP so that the buyer is aware that you understand how it works.
You can also highlight the potential risk of breaching GSCOP. But do so in the right way. Don’t take a confrontational “Stuff you, you’re in breach” approach as the buyer will just shrug their shoulders. Instead show how the breach could cause problems for both parties.
If you do escalate a concern, try to do so informally. A larger supplier will typically do day-to-day business through one buyer, but also have a relationship with a more senior buyer. An informal chat with that buyer to flag up any concerns might help.
But remember you are playing with fire. This is not something to be handled by an inexperienced account manager. Do not cry wolf - only hint at GSCOP issues where there is a specific breach. Plus always bear in mind: a buyer simply being demanding or failing to offer a competitive price does not constitute a breach of GSCOP - and even if you do succeed in getting an inappropriate promotion cost revoked, it may well pop up somewhere else where it is GSCOP compliant.
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