In 2013, the European Commission commenced a debate on whether relations in the retail supply chain were “fair”. This followed years of complaints from farmers that supermarkets were squeezing their profits and dictating unfair contractual terms. In publishing its 2013 Green Paper on Unfair Trading Practices, the Commission contributed further to the several years of investigation and analysis of business to business relations, generally in the food supply chain, in a number of Member States and at European level.
It was inevitable that this debate would soon cross over into the DIY industry.
EDRA’s position was to recognize there have been instances where DIY suppliers and retailers have encountered challenges in their close relationship. Indeed, many of the unfair trading practices do exist, do take place, and as explained by the Commission, are harmful to the growth of a sustainable supply chain.
However, we also believe these incidents are not mainstreamed across retailing, and indeed, are more often associated with the food retail sector.
DIY is not Grocery
DIY and grocery are different. Our sector is more about partnership between the two sides of the supply chain, as we have a longer-term view towards our consumers and our market. The culmination of our engagement as an industry on this issue has been the agreement to a Code of Practice between Retailers and Suppliers.The Secretariats of EDRA and fediyma are tasked with bringing the Code to life, and ensuring that it acts as a workable mechanism for overcoming challenges within our supply chain.
On 8th October 2014, the Boards of EDRA and fediyma signed an industry-wide Code of Practice on Retailer / Supplier relations.
The Code sets out a series of principles to be respected by all signatories and a process for remedying any problems between retailers and suppliers. All of the members of EDRA and fediyma are invited to sign this agreement. So far, over 90% of EDRA members have agreed to sign the Code – we aim to achieve 100% by the end of 2016.
Click here to read the EDRA - Fediyma Code of Practice on Retailer - Supplier Relationship