Advantages of GSCOP
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. The conduct offers an equal playing field for both the supplier and retailer and this ensures that they deal with each other with mutual respect for one another.
An advantage of the code is that it ensures that both parties can understand it since it is very simple and straightforward. The code provides for suppliers to only supply items originally requested by the retailers and such things need to be in written form. Retailers, on the other hand, are prohibited from changing their orders once they send a confirmation or original order to suppliers and this makes the working relationship easier.
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. According to the agreement, payments need to be made as quickly as possible especially if there are no issues or discrepancies with the invoice.
During the supply of certain groceries things like shrinkage or theft may occur, and in the past, that burden was usually transferred to the supplier. According to the code of conduct such responsibilities were noticed to be the burden of the retailer since they are the one who needs to ensure safety of goods at the depot. Things like losses as a result of shrinkage is a burden that the retailer carries and in such cases the supplier is not entitled to make payments for such losses, and the code has helped to clarify the issue to prevent suppliers from incurring risks and losses.
There is also provision for a senior buyer of the retailer to actually review orders and agreements between the supplier and retailers. As long as there is a transaction between two parties, it is critical to ensure that there is a third party to review the operations. 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.