Friday, December 12, 2014

Suppliers are asked to retailers’ move to seven-day »- Lawmix.ru

Suppliers are asked to retailers' move to seven-day »- Lawmix.ru

Weakening of the ruble could affect the relationship of suppliers and retail chains. In order to reverse the depreciation of the national currency and reduce losses, industry associations suppliers turned to the Association of Retail Companies (ACORT) to revise the period of consideration of the harmonization of prices from 45 days to 7 days.

The manufacturer notes that the current situation it is more profitable to pay a penalty for non-delivery to the retailer than to sell their products at the old prices.

Code of Good Practice, which regulates the relationship manufacturers, suppliers and retailers, says that retailers have 45 days to review the issue of price increases. If the latter refuse to raise the price, the supplier may terminate the shipment.

Andrew Karpov, CEO ACORT, promised to consider the timing of decisions on pricing, adding that the consideration may be to grade according to the turnover time of the product.

Representatives of some retailers note that the reduction of consideration will notice technical difficulties. According to Vladimir Rusanov, representative of X5 Retail Group, their company daily receives such notice, and a total of 10,000 in the network of suppliers, which requires much more time for consideration of petitions.

At the same time, experts note that the shortening of the notification may adversely affect the cooperation of suppliers and retailers, because the former can be ruined, and the latter as a result – lose suppliers.

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