The Supply Chain Initiative

European Supply Chain Initiative

The European Supply Chain Initiative (SCI) was a joint initiative of Several EU level associations, representing the food and drink industry (FoodDrinkEurope), the branded goods manufacturers (AIM), the retail sector (the European Retail Round Table, EuroCommerce and Independent Retail Europe), SMEs (SMEunited), and agricultural traders (CELCAA). The SCI was active between 2013 and 2019 and promoted fair business practices in the food supply chain as a basis for commercial dealings.

 

Principles of Good Practice

In November 2011, 11 members of the EU level multi-stakeholder dialogue adopted a set of Principles of Good Practice. These principles provide a framework for conducting business that respects contractual freedom and ensures competitiveness. The document also contains a list of examples of fair and unfair practices in vertical trading relationships. The Principles of Good Practice remain valid until today and should form the basis for any commercial dealings.

Please find the Principles of Good Practice in 23 languages below. Please note that in case of doubt with the translations, the English version would prevail: 

What is the purpose of the Initiative? Why are we doing this? 

The purpose of The Supply Chain Initiative is to promote fair business practices in the food supply chain as a basis for commercial dealings. It aims to generate a culture change through a commitment of signatories to fair trading practices coupled with measures aimed at integrating those principles into company day-to-day operations and to control their application. 

The Initiative also aims to ensure that companies address disputes in a fair and transparent manner whilst reassuring the complainants that they will not suffer from retaliation. 

Focus on SMEs: The Initiative is designed for all companies irrespective of their size. Conscious however of the administrative burden that some requirements may generate for SMEs, special attention has been given to reduce this burden as much as possible for them. 

Who is behind the Initiative?

The organisations that have signed up to the framework and are members of the SCI are: the European brands association AIM, the European Liaison Committee for Agricultural and Agri-Food Trade CELCAA, the European Retail Round Table ERRT, EuroCommerce, FoodDrinkEurope and Independent Retail Europe. 

AIM – http://www.aim.be/
CELCAA – http://www.celcaa.eu/
ERRT – http://www.errt.org/
EuroCommerce – http://www.eurocommerce.be/
FoodDrinkEurope – http://www.fooddrinkeurope.eu/
Independent Retail Europe – http://www.independentretaileurope.eu/

 

Rules of Governance and Operations

The Supply Chain Initiative (SCI) was established on 1st April 2013 by the following European associations representing the food and drink industry (FoodDrinkEurope), branded goods manufacturers (AIM), the retail sector (EuroCommerce, ERRT, Independent Retail Europe, Euro Coop), small and medium-sized enterprises (SMEunited – formerly UEAPME), and agricultural traders (CELCAA). 

The SCI is a voluntary scheme developed in the context of the European Commission-led High-Level Forum on a Better Functioning Food Supply Chain. Its purpose is to promote good practice in the food supply chain as a basis for fair commercial dealings. It is based on commonly agreed Principles of Good Practice, which companies commit to integrate in their day-to-day operations; a set of process commitments to support their application, dispute resolution options, and the promotion of stakeholder dialogue both at EU and national level. 

The SCI complements EU and national rules and regulations and other voluntary schemes. It was developed on the basis of four criteria set by Commissioner Barnier in 2013 for establishing a voluntary mechanism: efficiency, cost-effectiveness, effective control and transparency. Its performance is assessed against these criteria. 

These Rules of Governance and Operations provide a framework for the management of the SCI. 

The latest version of the SCI Rules of Governance and Operations, which have been adopted by the Governance Group on 2 February 2018.

Recommendation for good practice in relation to the principles of fair dealing, information, confidentiality and justifiable request

As part of the Supply Chain Initiative, registered businesses commit to the principles of good practice in vertical relationships in the food supply chain. This paper puts forward recommendations for good practice in relation to the respect of the principles of fair dealing, information, confidentiality and justifiable request in the context of a new branded product introduction, launch or renovation.

More about The European Supply Chain Initiative:

  1. FAQ
  2. Why join the Supply Chain Initiative?
Tools for companies:
  1. Self-assessment tool
  2. Check-list: SCI requirements for good practices in trading relations
  3. Model letter to communicate registration to business partners – its use is optional and companies that wish to use it are free to modify the text to adapt it to their own circumstances, in conformity with their obligations under the Rules of Governance and Operations.
Tools for national associations:
  1. Guidelines for the establishment of national platforms
  2. Compatibility table for comparing national provisions with the provisions of the Supply Chain Initiative with a view to request mutual recognition
Decisions of the Governance Group:
  1. Decision 1: UK and double jeopardy
  2. Decision 2: UK and compatibility of The Supply Chain Initiative to GSCOP (see also Annex I and Annex II)
  3. Decision 3: The dispute resolution options foreseen in contracts
  4. Decision 4: Compatibility of the Belgian Code of Conduct with The Supply Chain Initiative (see also Annex)
  5. Decision 5: Registration of SMEs
  6. Decision 6: Compatibility of the Italian legislation with the Supply Chain Initiative (see also Annex I and Annex II)