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

Tesco 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:

  1. Money owed to suppliers for goods must be paid in accordance with the terms for payment agreed between Tesco and the supplier
  2. Tesco must not make unilateral deductions
  3. Data input errors identified by suppliers must be resolved promptly
  4. Tesco must provide transparency and clarity in its dealings with suppliers
  5. Tesco teams and buyers must be trained in the findings from this investigation

How can you learn more about GSCOP?

Infographic
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