Tuesday 23 June 2015

The GCA-GSCOP five-issue approach to optimisation of supplier-retailer relationships.....

Some indication of the steady progress being made by the GCA can be gleaned from the latest YouGov survey (here), but nothing beats participating in yesterday's 2nd Annual Conference, a unique mix of Sales, Finance and Legal stakeholders, all sharing a common interest in optimising the supplier-retailer relationship.

(NamTip: key for NAMs to have a detailed knowledge of GSCOP in order to fulfill their co-ordinating role re the major customer)

At the start of the GSCOP process, the GCA was faced with what could have been an overwhelming number of potential issues. However, by focusing on a rolling five-issue 'hit-list', Christine Tacon was able to help both suppliers and retailers focus on a manageable set of issues within GSCOP as follows:

Top Five Issues:
1. Consumer complaints (processing charges by retailer) - New (in discussion)

2. Delays in payment (failure to pay suppliers within agreed time periods) - New (in discussion)

3. Forecasting/service levels (issues arising re forecasting and call-off/delivery) - Live (currently under discussion with each party)

4. Requests for lump sums: (see GSCOP) - Live (currently under discussion with each party)

5. Packaging & design charges (possible excess over market rates) - Live (currently under discussion with each party)

Forensics: third party audits (2 year limit on claims) - Closed (meaning agreement has been reached on process and  interpretation. Any further instances will be regarded as in breach)

Drop and drive - delivery performance:
(issues around possible discrepancies between deliveries and receipts - Closed (see Forensics)

As can be seen above, given that two issues are 'Closed', five issues remain. At yesterday's conference it was announced that the Consumer complaints issue is now closed. This means the GCA is now in the process of prioritising a new issue, to be determined by degree of relevance to suppliers/retailers i.e. your opportunity to submit details of perceived breaches either directly to the GCA, or via your trade association.

It has taken many years to reach this point in the evolution of supplier-retailer relationships. The application of GSCOP is now gathering momentum but still requires 'proof of purchase' in order to access the benefits

Your input can help...

NB GCA Conference: Speaker presentations now available here

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