The GSCOP Infographic: Understand GSCOP Quickly
- GSCOP stands for “Groceries Supply Code of Practice”, it is part of UK Law.
- It is part of The Groceries Market Investigation Order bill.
- It was previously the Supermarket Code of Practice, GSCOP in 2010.
- In 2013, The Groceries Code Adjudicator was appointed in 2013.
- Christine Tacon is the Groceries Code Adjudicator. She ensures adherence to the code by supermarkets and can impose a fine of up to 1% of their sales.
- Supermarket buyers are required to be trained in GSCOP each and every year.
- Each supermarket has to appoint, by law, a “Code Compliance Officer”. This is the person that suppliers can speak to if they have a query or dispute.
Key Principles of GSCOP
- Provide the supplier confidence to help understand profit and investing in the future.
- GSCOP’s watch-words are transparency, clarity, and openness.
- No retrospective requests.
- No delay in payments.
- No supplier to be the predominant funder of promotions.
- No listing fees.
- No tying of good and services.
- Written supply agreement that includes: payment terms, who will pay for marketing costs, and what circumstance requires who pays for wastage.
“The Order” of UK Supermarkets
Asda Stores Limited, a subsidiary of Wal-Mart stores
Co-operative Group Limited
Marks & Spencer plc
Wm Morrison Supermarkets plc
Waitrose Limited, a subsidiary of John Lewis plc
Aldi Stores Limited
Iceland Foods Limited, a subsidiary of the Big Food Group
Lidi UK GmbH
How can GSCOP affect a Supermarket?
The GCA conducted 1 Investigation with Tesco.
The cost to Tesco was £1.1M.
The GCA provided recommendations were:
- Money owed to suppliers for goods must be paid in accordance with the terms for payment agreed between Tesco and the supplier
- Tesco must not make unilateral deductions
- Data input errors identified by suppliers must be resolved promptly
- Tesco must provide transparency and clarity in its dealings with suppliers
- Tesco teams and buyers must be trained in the findings from this investigation
How can you learn more about GSCOP?
- Sign up to GCA’s newsletter
- View the Yearly GCA annual survey results
- Check out MBM’s GSCOP Playlist on YouTube
- Know the GCA’s case studies
- Get a copy of the GSCOP Book: ‘A Complete Understanding of the Groceries Supply Code of Practice‘ by Darren Smith.