New Grocery Supplier Code comes into play
Thu 4 Feb 2010
Written by Chris Randal
The ten biggest retailers in the UK grocery sector must follow a new code of practice from today (Thursday February 4th).
Demonstrating retailers’ commitment to long-term relationships with suppliers, the code applies to the industry companies with turnovers of more than £1 billion a year.
Since 2002, a code of practice has been in place for the four largest supermarkets Tesco, Sainsbury’s, Asda and Morrisons - but firms such as Iceland must adhere to the updated legislation.
From today, suppliers have the right to apply for an independent arbitrator appointed under the Chartered Institute of Arbitrators' Rules to look into any case that arises, with retailers meeting the initial cost.
Additionally, the code will protect suppliers from being requested to make unexpected retrospective payments or being asked to cover the cost of theft.
British Retail Consortium 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.”