| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2013) 37 final (31.1.13) |
| Publication Date | 31/01/2013 |
| Content Type | Policy-making |
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The business-to-business (B2B) supply chain is an important element of the European economy. It channels products and services from suppliers to consumers and has a direct impact on economic growth and employment. Retail services represent 4.3% of the EU’s GDP, 18.7 million (or 8.3%) of the EU’s employees and 17% of the EU’s SMEs. They ensure the distribution to consumers of goods and services stemming from other economic sectors, such as agriculture, manufacturing, logistics and IT services. This Green Paper addresses the B2B food and non-food supply chain, which is the chain of transactions between undertakings or between undertakings and public authorities that leads to the delivery of goods destined mainly to the general public for personal or household consumption or utilisation. The supply chain is composed of a number of actors (producers/processors/distributors) which all have an impact on the final price paid by the consumer. This impact varies according to the food and non-food sub-sector concerned. A well-functioning B2B food and non-food supply chain is key to achieve the maximum economic potential of those sectors. Over the last two decades, the B2B food and non-food supply chain has changed considerably for economic, social and demographic reasons. Increased concentration and vertical integration across the EU have led to structural changes in the B2B food and non-food supply chain. Various international retailer buying alliances have emerged seeking economies of scale in sourcing through greater buying power. The expansion of retailers’ own brands has turned some merchants into direct competitors of their suppliers. A small number of relatively strong players in the supply chain appear to have considerable negotiating power. These factors may, in some cases, lead to unfair trading practices (UTPs) in relationships along the B2B food and non-food supply chain. UTPs are practices that grossly deviate from good commercial conduct and are contrary to good faith and fair dealing. UTPs are typically imposed in a situation of imbalance by a stronger party on a weaker one and can exist from any side of the B2B relationship and at any stage in the supply chain. UTPs may have detrimental effects on the EU economy and for the B2B food and non-food supply chain in particular. Such practices may affect companies’, including SMEs’, capacity to invest and innovate. Moreover, the existence of fragmented national rules may constitute an additional obstacle to engaging in cross-border sourcing and distribution in the Single Market. This Green Paper contains a preliminary assessment and seeks further evidence and views relating to the possible issues stemming from UTPs in relationships along the B2B food and non-food supply chain and related to the issue of efficient enforcement of existing national rules aimed at combatting UTPs, as well as the resulting impact on the Single Market. The objective of the Green Paper is to launch a consultation with stakeholders on this analysis, to gather information and, where appropriate, to identify possible next steps in addressing this issue. |
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| Source Link | Link to Main Source http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2013:037:FIN |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe |
