GSCOP is an abbreviation for Groceries Supply Code of Practice, and it is a guidebook that was created to govern the relationship between suppliers and retailers. With the code, both suppliers and retailers know what kind of actions need to be taken when their rights are violated since they also get to know their rights. Below are some of the benefits that are associated with GSCOP.
Since the code necessitates fair dealings it goes a long way in ensuring that risks are not transferred from one party to the other. With the help of the code of conduct, it becomes easy to check for where deals went sour since it acts as a reference point on how the two parties need to act. In most cases the code offers a platform for mutual understanding where their is an equal playing field for the supplier and retailer.
The code is also very straightforward as well as easy to understand, and this makes any trading easy for both parties. Suppliers, for instance, can only supply products that were requested originally by the retailer and this agreement needs to be in writing. To make the working relationship easier; retailers are prohibited from altering their orders after they have sent an original order.
After the supplier has supplied the grocery items then payments need to be done soon afterwards, and they should not be delayed. The downside of delayed payments for suppliers is that it greatly affected their cash flow and that is why the conduct ensured that such delays should not occur. As long as the invoice has been received and there are no discrepancies, then the payments need to be made as soon as possible.
Before the code of conduct, the burden of the shrinkage of the products is something that was easily transferred to the supplier. As per the code of conduct, things like shrinkages are meant to be the burden of the retailers and not necessarily that of the suppliers since they are responsible for things like safety at the depot. The code of conduct essentially ensures that retailers are more careful when it comes to taking care of their products so that they do not transfer any burdens associated with losses back to the supplier especially with things like loss of production as a result of safety and the agreement clearly states that suppliers should not pay for such losses..
A senior buyer of the retailer is entitled to come between the retailer and the supplier and study things like orders as well as various transactions. Having an independent third party is very helpful when it comes to deals. In case there is a dispute; it becomes easy for the third party to be able to evaluate who was actually on the wrong based on the orders that they have at hand.