Product suppliers will get a right to fine retailers
Retail chains will not be allowed to fine suppliers for incomplete order processing by more than 15% of the cost of the order. However the suppliers themselves will be allowed to impose fines on retailers in case they do not accept goods in proper time.
This is known to be one of the most distressed issues in the relations between retailers and suppliers. The retailers’ fines sometimes reach very high hurdles, but until recently the suppliers were forced to accept the proposed terms as they were afraid to lose the contract. In September within the meeting of Code of Good Practice Commission it was decided to make equal fines for all suppliers; the amount of sanction cannot exceed 15% of the underdelivery.
With a 15% barrier suppliers will stay interested in cooperating with the retailer, and the retailer will get reasonable compensation for losses, says Ilya Yakubson from AKORT.
The new sanction will be useful in regard to dairy products suppliers, especially medium and small ones, believes Andrey Danilenko, Chairman of the Board of Directors of the National Dairy Producers Union.
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