GLOBE Foundation

Nestle first to sign supply chain code for fair practices

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Source: GLOBE Foundation

Nestle, the world’s largest food company, is the first to sign on to a voluntary European Union effort to create fairness in the trading relations of food suppliers and retailers.

The EU Framework for the Implementation and Enforcement of the Principles of Good Practice in the Food Supply Chain is a set of good practice principles which apply to trading relationships between retailers and suppliers.

The Supply Chain Initiative is a joint initiative launched by 7 EU level associations with the aim to increase fairness in commercial relations along the food supply chain.

Its ultimate stated goal is to “… lead to a genuine culture change and benefit all players in the food supply chain.”

The document lays down the general features of the framework, including its scope, operational requirements, provisions on the governance of the initiative, and performance indicators to help measure effectiveness and impact.

Laurent Freixe, Executive Vice President and Director of Zone Europe has called upon all food supply chain partners in Europe to follow Nestlé’s example. “The business to business framework marks an important step to build greater confidence in the fairness of the food supply chain,” he said. “Our partners should sign up swiftly.”

The supply chain initiative is a joint initiative launched by seven EU industry associations representing different interests in the food supply chain.

These include FoodDrinkEurope, representing the food and drink industry, AIM representing the branded goods manufacturers, Europen Retail Round TableEurocommerceEuroCoop and the Independent Retailers of Europe representing the retail sector and CELCAA representing agricultural traders.

It also has attracted 82 manufacturers and retailers who have indicated they will register. Including their international subsidiaries raises that total to more than 457 companies.

But Nestle is the first company to formally sign on.

What are Nestle and other companies agreeing to when they sign up?

The initiative has provided numerous rules and tools for enabling companies to “respect the principles of good practice in trading relations”. It also includes a dispute resolution processes.

“It’s one step closer to fair and efficient markets,” stated AIM, a manufacturer of branded goods during the formal launch ofThe Supply Chain Initiativein Brussels last month.

Learn more:

The Supply Chain Initiative can be found: here

Nestle Chairman, Peter Brabeck-Letmathe will be a keynote speaker at at GLOBE 2014 taking place March 26-28, 2014 in Vancouver Canada, on the GLOBE theme of “Food and Water – the Staples of Life in Peril”. Check here for more

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