The New Groceries Code Adjudicator (GCA) Mark White Answers Our Questions
Mark White officially took over the role of Groceries Code Adjudicator (GCA) on the 31st October 2020. He succeeded Christine Tacon after acting as Deputy Groceries Code Adjudicator prior to assuming the role.
Mark was kind enough to answer our questions, sharing his early experiences and what he aims to achieve going forward.
MBM: What things have shocked/surprised you in the first 2 months of taking on this role?
Mark White: I acted as Christine Tacon’s deputy for three months until formally taking up my role. During this time I held meetings and discussions with the Code Compliance Officers, CEOs and Audit Chairs of the retailers. In addition, I have many years’ experience in industries selling products and services in highly competitive, price-sensitive markets that have prepared me for the role.
As a result, there haven’t been any real surprises or shocks. But what has been good to see confirmed is how well the Code is embedded into the sector and the real progress it has achieved.
A standout achievement has been the high level of communication between suppliers and retailers that GSCOP has helped to foster. It has definitely demonstrated its worth during the Covid-19 pandemic. During which all parts of the sector have worked well together to ensure groceries are reaching supermarket shelves for consumers.
It is important to keep raising awareness of the importance of the Code to suppliers. I have refreshed the GCA Code Confident Campaign with a new message that suppliers know it, use it and grow their business. I want suppliers to use it wisely such as when a retailer makes a proposal that is clearly contrary to the Code. If this does not happen, I urge suppliers or their trade association to let me know.
MBM: Amazon – How much are they in your sights?
Mark White: I do hear from suppliers wanting Amazon to be regulated under the Groceries Supply Code of Practice but that decision is not for the Groceries Code Adjudicator. It is a decision for the Competitions and Markets Authority (CMA) which is responsible for designating retailers.
Each year the CMA reviews publicly-available information. This is to determine whether any existing retailers or new market entrants has or will soon have a UK annual turnover of more than £1 billion in the retail supply of groceries. Those above this threshold are formally designated as “large retailers” under the Code.
Mark White discusses Amazon being regulated under GSCOP
In recent years the CMA has added three retailers to the original list of ten. My advice to suppliers who have information showing that Amazon meets the £1 billion threshold in groceries is to take that evidence to the CMA.
MBM: Christine had a rolling list of priorities, e.g. complaints – do you have a list? If yes, what is on it?
Mark White: One of my priorities is to ensure that the Groceries Code Adjudicator is fully focused on the changing relationships between retailers and suppliers as the large retailers adapt to the conditions created by Covid-19 and Brexit. Constructive relationships between suppliers and retailers are crucial but so is the relationship I have with both sides.
The sector is clearly changing in response to the pressures caused by the virus. And there have been some positives such as more favourable payment terms for smaller suppliers. However, there is some evidence that the pandemic has impacted the number of promotions, so retailers are looking carefully at their ranges, their routes to market and their pricing proposition to consumers.
Strategic plans for the next 3-5 years have been brought forward. Just look at the growth in online and moves towards EDLP by some retailers.
With the market changing there is significant tension on pricing. This tension may also heighten as the retailers look forward to how they will achieve growth in the next year. If, for example, hospitality returns as the pandemic eases.
As a result, it is important my focus adapts to these new challenges. I will be watching how issues such as funding the cost of a promotion may give way to others like delays in payment. Including the way audits are undertaken and how range reviews are conducted. I will also be keeping notice of variations in supply agreements and delisting. Both significant issues for producers – high on my radar during the coming months.
MBM: What are your top 3 ‘to do’s?
Mark White: It is very important to me to raise awareness among suppliers about how the Code can help their business. I am really keen to get out and about as soon as possible to meet suppliers face-to-face. But in the meantime, I have reissued the Code Confident pack with a new message. Know it, Use it, Grow Your Business.
I am also taking every opportunity to have virtual meetings with all those with an interest in the groceries supply chain.
Mark White has key goals and so should you
Another major focus has been to create an environment in which suppliers feel totally confident to raise issues with me or the Code Compliance Officers. Soon after I was appointed, I discussed this with the CCOs. They have all told me that their practice has been to maintain confidentiality in discussions with suppliers.
However, it’s such an important area where concerns still persist. So it is one thing to say something and another to have it in writing. The CCOs have now formally confirmed to me that they will treat any discussions with suppliers in the strictest of confidence. And it will be up to the supplier to determine whether they can disclose any details about the subject matter of their Code-related discussion with their designated retailer.
Continued…
I have also recently launched a third-party confidential platform for suppliers. This is to report behaviour by a designated retailer that they believe to be in breach of the Code. They can provide information anonymously through ‘Tell the GCA’ while choosing to continue to correspond with me via a secure post box that protects their identity.
This is not intended as a replacement for contacting me directly if that is what suppliers wish. For those who still harbour concern about confidentiality. I want to be able to demonstrate they can protect their identities if they bring me information.
Code compliance needs to be embedded in everything the designated retailers do. I am driving forward the whole-house approach to compliance and expanding on previous discussions. Looking at the tone from the top of the retailers and further exploring training. Including the link between training, remuneration and assurance.
MBM: What are the main concerns that suppliers are bringing to your door?
Mark White: I will be able to answer this question more specifically when I see the results of the 2021 GCA survey. I launched the survey in January, which was earlier than normal. This is because I wanted to get a clear understanding of supplier concerns as soon as possible. So far, I am very pleased. Because we have already had a strong response but the more suppliers who take part the better.
The survey is currently open until 21st February at www.Yougov.com/gca and I would urge your readers who are suppliers to take the few minutes it needs to complete. The survey response will shape the issues that I focus on. And so in a very real sense suppliers’ replies can help their business.
Understand the main concerns that suppliers can bring to the door as soon as possible
This year the survey has two innovations. First, I would like to hear from suppliers about examples of where they think the designated retailers are doing a good job. These will help me highlight success and share good practice. Second, after the main survey has closed, I am asking YouGov to carry out some detailed interviews with suppliers on particular issues arising from the findings.
If any supplier is interested in taking part in these interviews, please provide contact details at the end of the survey. As with survey responses, any information gathered from these follow-up interviews will be treated with complete confidence.
My door is always open to suppliers. But while we are under Covid restrictions it has been difficult to meet suppliers directly. So I have been looking for other opportunities. I have already held my first supplier webinar which I found a very valuable event. And I am planning more in the coming months. Look out for details on the GCA website.
Christine Tacon, the current Groceries Code Adjudicator is nearing the end of her 5-year term overseeing the day to day workings of the Code. We spoke to her at her offices inside the Competition and Markets Authority in Canary Wharf.
We wanted to understand, from her perspective, what she feels she has achieved in the past 5 years, what she regrets, and most importantly, whether she feels her self-styled ‘collaborative’ approach to the implementation of the Code with the major supermarkets has been a success.
MBM: Of the many improvements you have made to supermarket buying methods which are you most proud of?
Christine Tacon: Forensic Auditing, where getting the retailers to only go back 2 years. This has, I know, made a massive impact to even the very biggest of suppliers. Those, that arguably, could look after themselves. It’s gone from 45% of suppliers saying it’s an issue to 7%. For me, that is the biggest improvement.
I’m also proud of drop and drive because that was always going to be a very difficult nut to crack. The fact so many retailers have now implemented good faith receiving is great. What that is doing is taking out admin at depots, admin for finance people on both sides. I think everyone has realised that this is a far more efficient way of doing business.
Another, very small one, is the finance to finance helpline. Now, if anyone is ever owed any money, instead of having to speak to a buyer, finance to finance can sort it out.
MBM: And one that you regret not achieving or is still on the to-do list?
Christine Tacon: I don’t know what else I could have done, but I’ve not made enough progress as I wanted to on forecasting. Forecasting is a huge win-win for both parties. It stops a huge amount of waste for the supplier. It also makes sure you get better availability on the shelf, and so there’s a real win-win there. I have put a lot of pressure on them. I think every retailer will tell me that they are improving their forecasting systems, but I still feel there is more to go for.
MBM: The supermarkets are/were notorious for their aggressive tactics towards suppliers. You deliberately decided to take a collaborative approach. What do you think would have happened if you had taken a more combative stance?
Christine Tacon: It evolved. Obviously, I was meeting with all the Code Compliance Officers. They were saying, ‘we think we’re compliant but let us know if you think otherwise’. I can’t investigate without evidence, so if suppliers don’t give me evidence, where do I start? If all you have is some anecdotes, and often, they (the suppliers) won’t even tell me which retailer it is! Then, where do I go?
That’s why going out and getting myself involved with suppliers on a significant number of occasions is so important. So, if all I’m ever hearing is anecdotes, I haven’t got evidence to investigate. I’m almost in a situation where I may as well work with the retailers and say, ‘well I hear you might be doing such and such, you might want to go and have a look at it’. That has evolved into them responding. It has enabled me to work with limited evidence on a large number of fronts at a great pace.
MBM: The Code has a lot of potential ‘grey’ areas. For example, how long is ‘reasonable notice’ and what is ‘without duress’? Do you think a more robust approach with more formal investigations (and potential sanctions) would have clarified things more? Perhaps created precedents?
Christine Tacon: I call them ‘woolly’! For example, I’ve said right from the beginning that there is no such thing as a breach of paragraph 2 (Principle of fair dealing). Paragraph 2 is an overall umbrella. You can’t just say it was unfair, it has to be a breach of any other paragraph.
Fair Dealing in chapter 2 of GSCOP
So, if you look at one of the investigations, it was paragraph 5 (No delay in payments) and paragraph 16 (Duties in relation to delisting), along with a breach of paragraph 2.
Every delist has to be done on a case by case basis. If you, as a supplier, have been delisted and you don’t think the notice is reasonable go to the GCA website. Go through the checklist of everything you have to talk about with delisting. Then, write to them (the retailer) and say, ‘I don’t think in this case it’s reasonable notice’, because, ‘I think such and such is reasonable’. You will probably get an extension.
MBM: Only c50% of suppliers have been trained in the Code 5 years or so down the line. Why do you think this is?
Christine Tacon: I didn’t start off by promoting training. When I first started, my big push was to get the trade associations to bring me evidence of issues. You (the trade associations) protect the anonymity of your suppliers, and you are then saying as a collective that our members are experiencing this or that. That’s where forensic auditing came from.
It was a trade association saying that our members have an issue with forensic auditing. That allowed me to raise it as an issue. So, I kept pushing on the trade association front to bring me issues. However, I wasn’t getting anywhere, so I then thought I will turn it over to the trade associations and say, ‘if you are not going to bring me what the issues are, why don’t you train your members?’. I think that’s actually what got the whole (training) thing started.
If you train your members, then you will hear at the training sessions just exactly what the issues are that your members have. One of the reasons training is so important is that these things are best headed off immediately.
MBM: How many retailers do you think will be covered by the Code by 2025?
Christine Tacon: It’s the decision of the Competition and Markets Authority based on the £1billion turnover (threshold). But, if they don’t have the access to the information to know if it’s a £1billion turnover then it’s worth telling them. If there are other arguments as to whether other people should be covered that aren’t at the £1billion turnover, that’s probably something to direct more at the policymakers.
However, again, trade associations would be the most powerful group to actually consolidate the information. In terms of a 2025 prediction, if the £1billion turnover (threshold) doesn’t change, then in my view, a maximum of 3 more retailers will be added.
MBM: What would your one piece of advice be to your successor?
Christine Tacon: Get out there to where the suppliers are. Go to where they are and listen to them. You will hear very little if you just stay in the office. I found, that when I went out there and spoke to people face to face, they would always tell me what was going on.
Christine Tacon: Well, I don’t is the answer to that – I’m not at home enough! My husband does most of the purchasing. I do deliberately try and shop in as many of the supermarkets as I can. When I meet the Code Compliance Officers its nice to be able to talk about their stores.
MBM: Best supermarket Head Office coffee?
Christine Tacon: I’ve never actually noticed their coffee! You are there with your message, and it’s important, so you just get on with it!
Christine Tacon: I don’t think so! I feel I have a lot of experience in the grocery sector that I want to contribute. Also, I really loved being in a role that’s been able to make a difference. I suspect that everything I look at in the future I will be comparing against what I’ve done here. I feel I’ve packaged it (the Code) up as far as I’m going to take it, so somebody else can come in with some new ideas.
So, the GCA role will be the benchmark that I compare everybody against. Maybe the Government might think here’s a very exciting role and tempt me with that, or it may just be something within the industry.
Do you supply one of the big 12 UK grocers? Have you a GSCOP compliant written supply agreement with each of those retailers? According to YouGov (2016), 48% of you haven’t! Should you have one? And what are the issues if you don’t? And, most importantly, should you be worried?
Should You Worry?
To answer the third question first, the simple answer is NO. This is one of the most common misconceptions about GSCOP. Yes, it is a legally binding piece of legislation. However, it is on certain retailers only. Suppliers cannot be in breach of GSCOP. There is no GSCOP risk to suppliers plain and simple!
GSCOP and Competition Law
Myth two is that GSCOP is part of Competition Law. The myth goes that suppliers should worry about, amongst other things, potentially facing price-fixing accusations. In instances that they are not conscientious about stating that ‘retail pricing is at the sole discretion of the retailer’. Or failing to quote ‘recommended retail or selling price’ whenever suppliers’ mention the retail price, either verbally, written or electronically. To be clear, GSCOP has nothing whatsoever to do with the very separate piece of legislation that is Competition Law.
Dispelling the myth between GSCOP’s relationship with Competition Law
Supplier sales teams must be very aware of their responsibilities under Competition Law. This is something that suppliers can breach, and the possible penalties are severe. Consequently, if you are in any doubt, you should seek formal legal advice.
So why should it bother you to have a GSCOP written supply agreement with your customers? Well, because it offers you certain protections from potential abuses of power by the designated retailers covered by the Code. Some of which we will illustrate and explain below:
What Does GSCOP Stand For?
The third biggest misconception about GSCOP is what the actual acronym stands for. It is not Groceries Supply (or Supplier) Code of Practice as most think. The pithy and catchy full title is:
It covers 12 Designated UK retailers: Tesco, Asda, Sainsbury, Morrisons, Aldi, Lidl, CoOp, Marks and Spencer, Iceland, Waitrose, B&M, Home Bargains and Ocado. [The latter two only being added to the original 10 in November 2018.]
What Is a ‘Grocery’ Product?
There are also some interesting definitions of what a ‘grocery’ product in the Code is. Food, Pet Food, Cleaning Products, Toiletries, Drinks and Household products are ‘groceries’. However, lots and lots of other products that supermarkets sell are technically not covered. Tobacco, Plants and Flowers, Toys, Perfume and Cosmetics, Gardening Products, Electrical and Kitchen Hardware, for example. In practical terms, most of the designated retailers have, however, incorporated all categories they sell into their GSCOP obligations.
The heart of the Code, and the heart of any protections you may have from it, are all contingent on the written supply agreement. The Code states that whenever the supplier delivers groceries, the retailer must provide a written supply agreement. This written agreement must incorporate the Code.
Each designated retailer has put in place different interpretations of what is and what constitutes a written supply agreement. Whichever format they use, you are, however, entitled as a supplier to have a copy in writing. Moreover, it must cover certain things.
To understand fully what should be in your written supply agreement, download the handy Making Business Matter GSCOP Written Supply Agreement Checklist here:
Your written supply agreement cheat sheet
Your Responsibilities
You need to check you are completely happy with your written supply agreement. The two most important words in the GSCOP legislation are REQUEST and REQUIRE. You need to be keenly aware of their meanings, and the differences, between REQUEST and REQUIRE.
There are only two things that retailers can REQUIRE of suppliers in the Code and lots and lots of things they cannot.
However, there are very many things that they are perfectly entitled to REQUEST. All of which could potentially cost you a lot of money. Any REQUEST they do make of you must be fair and not made subject to any duress.
For full details of what retailers can REQUEST versus those they can and cannot REQUIRE download the handy Making Business Matter GSCOP Written Supply Agreement Checklist above.
Email Contract Safety Tips
Since the validity of email contracts is generally accepted under the law, it is important to exercise caution when doing business through email. To that end, the following tips may be helpful:
A contract need not be physically signed to be agreed to.
A contract may be created over a series of emails, not just one.
In some instances, a preliminary email may constitute a binding contract regardless of it referencing a future formal agreement that has yet to be agreed to.
Beware of creating an ‘implied-in-fact’ contract, which may occur through industry custom and your conduct.
Beware of using certain terms unless you intend their meaning. ‘Accept’, ‘agreement’, and ‘agree’ can all be viewed as a binding acceptance of a contract in a court of law. The terms “preliminary negations” and “non-binding proposal” would be better substitutes if an actual contract is not intended.
If certain conditions are desired before entering into a contract, state them clearly. Do not create the impression of a meeting of the minds if that is not the intent.
Training Obligations
Each of the retailers covered by the Code must, by law, train their commercial teams. They must be aware of their legal responsibilities regarding the Code and compliance with it. All new commercial team members must complete training. Furthermore, all teams must re-train each year. Last years YouGov survey into the practical effects and workings of the Code commissioned by the Groceries Code Adjudicator (GCA) showed that 50% of suppliers had had no training in the Code. This percentage rose the smaller the supplier sharply.
One-time training is not enough
The potential imbalance of well trained and well-versed buyers up against, and negotiating with, small suppliers with no knowledge, or no real practical knowledge, of the Code, is a recipe for suboptimal agreements that can and will cost those suppliers money.
Here at MBM we have, for example, come across small produce suppliers who thought it was part of the T’s & C’s of doing business with one of the major multiples to pay first-class rail fares and put up technical managers in 5-star hotels whenever they made visits to their farms!
Lastly, a final top tip. If you are one of the 50% of suppliers who have had no formal training in the Code and/or one of the 48% without a formal and compliant written supply agreement, get some training and advice from Making Business Matter.
Bonus!
If you’d like to broaden your understanding of GSCOP then pick up our GSCOP book via Amazon, as a small paperback or an eBook. This way you can keep it with you on the go, and refer to it as and when you need.
Below, is a list of all of the coaching skills definitions you need when it comes to the GSCOP. Each question contains a keyword and its definition, to get you started on the basics of the topic and the frequently asked questions. Furthermore, you will also find helpful GSCOP tips and explanations mentioned across our website:
If you want to understand better how GSCOP works and, in particular, how it can affect you as a Supplier, Retailer, or Consumer, take a look at our GSCOP book.[/vc_column_text][us_separator][vc_tta_accordion][vc_tta_section title=”What is Acquisition?”][vc_column_text]In brief, when one company purchases or acquires another company, which is sometimes referred to as a takeover.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What are Anti-Competitive Practices?”][vc_column_text]Here it means activities that reduce or prevent competition in a particular market.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is an Anti-Competitive Agreement?”][vc_column_text]An anti-Competitive Agreement or ACA is an agreement to co-operate between two or more competitors in the same market to prevent, restrict or distort competition. Some examples of ACA are dividing the market and fixing prices.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is an Arbitrator?”][vc_column_text]An independent third-party body that usually helps resolve disputes outside of court.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is an Audit?”][vc_column_text]This is an inspection of a business by an official representative. And, as a result, it determines whether an institution, organisation, or business is compliant to set codes and standards in their industry.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is a Bargaining Group?”][vc_column_text]This is a group of farmers or producers who collectively bargain with a processor instead of doing it individually.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What are Barriers to Entry?”][vc_column_text]The cost needed for a new player to enter the market.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Business Protection from Unfair Trading Regulations?”][vc_column_text]Business Protection from Unfair Trading Regulations or BPR aims to protect businesses by prohibiting misleading business-to-business advertising and restricting how businesses compare their products from their competitors.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is the Buying Team?”][vc_column_text]Employees of a retailer who directly purchase groceries for resale. It also includes those in charge of directly managing employees with those duties.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is the Code Compliance Officer?”][vc_column_text]Also referred to as CCO. This is a third-party person who ensures businesses are compliant with regulations. And this individual is also responsible for investigating potential violations.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Collective Bargaining?”][vc_column_text]When businesses reach a mutually beneficial agreement for a sale or goods or services that have a common supplier or customer.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Competition and Markets Authority?”][vc_column_text]CMA is a government department in the United Kingdom that ensures that business competitions grow stronger. At the same time, they prevent anti-competitive practices. Also, CMA took over several functions of the now abolished Competition Commission and Office of Fair Trading.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Competition Commission?”][vc_column_text]The Competition Commission (CC) is a public body. It is responsible for investigating markets, mergers and other regulated industries relevant to the United Kingdom’s Competition Law. But in 2014, The CC closed and its functions were transferred to the CMA.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Compliance?”][vc_column_text]The state of abiding by established guidelines, code, or other rules that a particular industry has set.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is a Consumer Codes Approval Scheme?”][vc_column_text]This is also known as CCAS. It focuses on improving customer standards by approving codes of practise. This is done via code sponsors as approved by the CTSI or Chartered Trading Standards Institute.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Consumer Protection from Unfair Trading Regulations?”][vc_column_text]Consumer Protection from Unfair Trading Regulations or CPR was created to protect consumers from misleading or unfair trading practices.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What does it mean to De-list?”][vc_column_text]To stop purchasing groceries for resale from a Supplier. For the most part, the reason is irrelevant.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is a Designated Retailer?”][vc_column_text]This is a retailer in the UK that has a grocery sales turnover exceeding £1billion. Indeed, retail giants such as Tesco, Waitrose, Aldi, and Marks & Spencer are in the list of designated retailers.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is a Dispute?”][vc_column_text]A report from a Supplier of an alleged breach of the code by a Designated Retailer. Conversely, a retailer can launch a dispute against a supplier.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Dumping?”][vc_column_text]Selling a product at a losing price with the intent of driving away the competition, in particular, to increase market share.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What does it mean to be Elastic?”][vc_column_text]A term used especially in economics to describe when you accompany a small change in price by a large difference in the quantity demanded.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Exclusive Dealing?”][vc_column_text]When a contracted Supplier obliges a retailer to purchase from them exclusively, and accordingly.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is the Farm Gate Price?”][vc_column_text]The amount that farmers charge to processors.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What are Groceries?”][vc_column_text]This a category of goods such as food, drinks, pet food, household goods, toiletries, and cleaning products.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is the Groceries Code Adjudicator?”][vc_column_text]Sometimes referred to as GCA, ‘Adjudicator’, or ‘Supermarket Ombudsman’, this is an independent body or person that oversees the enforcement of GSCOP within the United Kingdom. For example, Christine Tacon is the current Groceries Code Adjudicator[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is a Groceries (Supply Chain Practices) Market Investigation Order?”][vc_column_text]A 19-page Order that large grocery retailers in the United Kingdom need to adhere to. GSCOP is a part of this order.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is GSCOP?”][vc_column_text]In 2001, the Competition Commission launched an investigation into the groceries market. And, as a result, this investigation gave birth to the Supermarket Code of Practice that would govern relationships between suppliers and major supermarkets. However, despite the code of practice in place, complaints from smaller retailers and suppliers continued to rise, expressing outcry and dissatisfaction towards major UK supermarkets. Consequently, this prompted the UK’s office to launch several investigations which eventually led the Competition Commission to create ‘The Groceries Market Investigation Order’ in 2009. This included the Groceries Supply Code of Practice (GSCOP). And this is a 7-page document containing a set of codes and guidelines to help achieve a fair and harmonious relationship between Suppliers and major supermarkets.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What does it mean to be Inelastic?”][vc_column_text]This is a term used in economics. In short, a large change in price accompanies only a small change in the quantity demanded.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Limit Pricing?”][vc_column_text]When a company that has a monopoly in a product or industry sets a price that makes it difficult for new players to enter the market and compete.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Market Power?”][vc_column_text]A company’s ability to dictate a price that would beat the competition. Meanwhile, you can also use Monopoly Power in place of Market Power.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Market Segmentation?”][vc_column_text]Breaking down target markets into segments, in particular, to allow a more efficient and manageable approach to marketing. For example, you can segment an audience by behaviour, lifestyle, demographics, and other specific filters.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Market Size?”][vc_column_text]The extent of an audience in a particular market segment. For the most part, this helps determine whether it is worth pursuing a specific segment.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Marketing Cost?”][vc_column_text]Expenses incurred that are related to the exchange of goods to a consumer or customer. In particular, this includes costs used to promote and distribute goods to the point of sale.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is a Merger?”][vc_column_text]When companies join together to gain market share or strengthen assets.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is the Office of Fair Trading?”][vc_column_text]OFT (OFT) was UK’s non-ministerial government department that acted as the country’s economic regulator. The office established the Fair Trading Act 1973 and ensured the healthy growth of business competition while weeding out unfair practices. And the office was abolished in 2014, and its functions were transferred to the CMA.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Order?”][vc_column_text]Another term commonly used to refer to The Groceries (Supply Chain Practices) Market Investigation Order.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Payment?”][vc_column_text]Compensation provided for goods or services. In particular, this can be in the monetary form or otherwise.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Predatory Pricing?”][vc_column_text]When a business significantly lowers its prices with the intent of greatly reducing competitor sales or even pushing them out of the market.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Price Discrimination?”][vc_column_text]When a company changes the price of a product or service depending primarily on the market trends. And the other end of the spectrum is to base price on cost-related reasons.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Who is the Primary Buyer?”][vc_column_text]Employee’s from a retailer’s buying team who deal with buying from the supplier daily[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Profit?”][vc_column_text]Financial gain after deducting expenses incurred to create a sale.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Promotion?”][vc_column_text]Any offer, discount, or reduced retail price offered to the consumers for a limited amount of time.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Raw Material?”][vc_column_text]These are basic materials that have to go through processing to become finished products.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Reasonable Notice?”][vc_column_text]Providing notice within a reasonable time-frame to inform affected parties of upcoming changes. And this includes the Supply Agreement length.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Recommended Retail Price?”][vc_column_text]Recommended Retail Price or RRP is also known as the Manufacturer’s Suggested Retail Price (MSRP) or Suggested Retail Price (SRP)
[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Resale Price Maintenance?”][vc_column_text]Resale Price Maintenance or RPM is a practice where manufacturers and distributors agree to sell the product at certain price points.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Who is the Retailer?”][vc_column_text]A person or group of people in the United Kingdom who is/are in the business of selling Groceries.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is a Retroactive Request?”][vc_column_text]Requests to change or amend previously set supply agreements to take effect from a date in the past. However, GSCOP prohibits these types of changes.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Who is the Senior Buyer?”][vc_column_text]A person from the retailer’s buying team who manages the Supplier’s primary buyer.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Shrinkage?”][vc_column_text]This is the allowance made for a reduction in the takings of a business due to wastage or theft.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Who is the Supplier?”][vc_column_text]Anyone in the business of providing direct supply to any Retailer of Groceries for resale in the United Kingdom.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is the Supply Agreement?”][vc_column_text]This is an agreement that is recorded in writing following Article 6(1).[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is the Supply Chain?”][vc_column_text]A chain of organisation, events, people, and information needed to move a product or service from producers or suppliers to their intended consumer.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Supply Chain Management?”][vc_column_text]Efficiently managing the movement of goods and services as they go through different channels of a supply chain.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is the Treaty on the Functioning of the European Union?”][vc_column_text]Treaty on the Functioning of the EU or TFEU is the basis of European Law. It sets out the scope of the authority of the EU to legislate and the principles of law in areas that it operates.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is UHT?”][vc_column_text]Milk that has undergone Ultra High-Temperature treatment.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is the Written Supply Agreement?”][vc_column_text]Written Supply Agreement or WSA is a written contract that states the terms and conditions of how one company will manufacture and supply goods to another company.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is Wastage?”][vc_column_text]Groceries that are unfit for sale after getting delivered to Retailers.[/vc_column_text][/vc_tta_section][/vc_tta_accordion][/vc_column][/vc_row][vc_row][vc_column][/vc_column][/vc_row]
