She writes:
NFU members attending a training day run by British Brands Group learned more about how the code and its adjudicator, Christine Tacon, can help when suppliers face delays in payments, charges for customer complaints or the differences between a request and a requirement from retailers.
There was a common theme throughout the day; suppliers need to better understand the powers of GSCOP and the GCA when dealing with retailer negotiations in order to get the most out of the code.
I heard the delegates talk about many issues they face, all of which are covered in the code:
“Excessive customer complaint charges”
“Excessive packaging costs as a result of poor forecasting”
“Over-riders – excessive lump sum requests”
It concerns me that these types of complaints are happening, and yet Christine Tacon hears very little from the supply base about issues they are facing.
Fundamentally, it’s an issue of confidentially and suppliers’ fear of retailers knowing they have filed a complaint. Christine herself has highlighted her concerns that she hears very little from the supply base, due to confidentially concerns.
Suppliers are protected by the Freedom of Information Act as well as Christine Tacon having a statutory obligation to keep suppliers’ identities anonymous. This even goes as far as the GCA being unable to hint at a geographical location of the supplier.
A great example of this is her investigation into Tesco’s which concluded earlier in 2016. Christine came across a whole load of issues, which she was able to report on and make recommendations in a powerful way, without a single supplier’s identify or confidentiality being compromised.
If you want the GCA to continue to regulate retailer behaviours, suppliers have got to understand the code and highlight concerns with the GCA herself, or through bodies such as the NFU, who will raise the issue on your behalf.
Retailers are required under the order to train everybody every year. This is just not buyers, but it is everyone within the retailer who has communications with the suppliers. But most suppliers have never undertaken training, and I wonder how many suppliers actually know what GSCOP is?
To me, understanding the code is a fundamental tool you have to have in your negotiating packages. It’s a huge help when a retailer is pushing for something that you believe is unfair, or against the code. Training gives you the ability to react in a manner which will aid your negotiation power.
Christine Tacon encourages this training. She has in the past highlighted that those who are trained are much more sensible in approaching and dealing with any breaches as they know their rights.
The NFU has a great offer with the British Brands Group where members can save up to 70% on course fees. We ran our second successful GSCOP Course at the end of April. If you would like to attend, and are an NFU member, please get in touch with Rm9vZENoYWluRm9jdXNAbmZ1Lm9yZy51aw==
Here are my top tips:
- Read your contract. Know what you have signed up to, even retrospectively!
- Know your Code Compliance Officers. There is one for every retailer, and they sit independently from the retailer’s buying function. They are there to ensure the retailer is complying with GSCOP, but also can be used to resolved breaches with suppliers.
- Delegate a member of your team to be the ‘expert’ in GSCOP. This will help you manage your business if you think your retailer has breached it.
- Ensure all agreements are in writing – even verbal agreements. Keep them safe.
- Train your sales teams in GSCOP. All the retailer buyers are trained by law, you should be too.
- Know the right questions to ask in negotiations e.g. “what are your terms for promotions?”
From our members…
East Yorkshire Egg Producer:
“We supply directly to supermarkets, and so it would’ve been wonderful to have done this course around November time as we’ve just gone through a tender process and on the contracts that have come back for signing there have been one or two issues where the supermarkets have changed the contract from 12 months to 18 months with no negotiation. Had we have known where we stood, it would have given us the ideal opportunity to push back. When you first start dealing with supermarkets you agree to things because it’s your first foot in the door without being fully aware of what you’re agreeing to; therefore the GCA training has been hugely beneficial knowing that you don’t have to sign up to an unfair deal”
Herefordshire Fruit Grower:
“The training has been very interesting. I knew a little about the background but it is interesting to know what is compliant and what is not compliant. I think the training is very clear around what this code covers, which is slightly greater than it initially appeared. It allows you to develop questions in terms of dealing with the supermarkets but also the format in asking the right questions.”