A strengthened and extended Grocery Supplier Code of Practice comes into force today, and “demonstrates retailers’ commitment to good, long-term relationships with suppliers,” according to the British Retail Consortium (BRC).
The code applies to all the UK’s 10 biggest grocery retailers – an earlier code covered just the ‘big four’ supermarkets – and, for the first time, gives suppliers access to independent, binding arbitration.
BRC says retailers have invested heavily to demonstrate they are meeting the code’s requirement and are working closely with suppliers to increase understanding of it.
There has been a code of practice for the four largest supermarkets since 2002. It was reviewed by the Office of Fair Trading (OFT) in 2005 and found to be effective.
The new extended code will apply to the 10 retailers with a grocery turnover of more than £1bn a year.
BRC director general Stephen Robertson said: “The effort and money retailers are putting into demonstrating they meet the code’s requirements and informing suppliers shows they accept their responsibilities as major players in the supply chain.
“The code is regulated by the OFT and gives suppliers more protection and a new right to independent arbitration if they’re unhappy. It will strengthen relationships and give suppliers the confidence they need to plan for the future.”
