Ecuador: Supermarkets must comply with Good Practices Manual

Supermakets must comply with the Good Practices Manual, starting November 1

Quito, Nov 1 (Andes).- ANDES.info.ec reported Supermarkets and similar businesses and suppliers must comply, starting this Saturday with the Manual of Good Practice, issued by the Superintendency of Control of Market Power (SCPM), which sets deadlines for payment of purchases, minimum selling goods among other matters.

“The manual intends to regulate a relationship. On the one side the producers and on the other the consumers.They come together through a channel: supermarkets, according to Marcelo Ortega, Supervisor of Market Control.

He noted that what exists in the Ecuadorian market, is an “oligopsony” a domain of few buyers who are establishing the conditions for suppliers, which is why the Manual will regulate this problem.
The ‘Handbook of best business practices for the supermarket industry was created and socialized with different people for a year and it involves areas of food and others, such as toiletries, household care, beverages, confectionery, among others.

The establishments involved are: supermarkets, hypermarkets, superstores, department stores, convenience stores (which are next to gas stations), wineries, distributors, manufacturers, importers and suppliers in general. It does not include local neighborhood shops.
Among the most important aspects of the manual, is the payment schedule, Ortega explained that the document states that purchases of up to $ 50,000, “which are typically smaller producers” will have to be canceled up to 15 days; up to $ 250,000 in 30 days; between 250,000 and three million dollars up to 45 days; and more than three million in 60 days.

What is are looking for is the benefit of small suppliers, those businesses which require timely payment will allow them to fulfill their obligations, unlike larger businesses that have greater financial leeway.
Another problem that the manual intendends to correct are practices such as requiring suppliers to deliver goods at very low cost or sometimes free when a new supermarket inaugurated, said Ortega. “This kind of abuse is absolutely forbidden,” he said.

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One aspect of particular importance is the requirement that supermarkets have “at least 15% of the suppliers” from MSMEs (micro, small and medium enterprises) and popular and solidarity economy.

We also seek to control what products go on the shelves, as it usually is the biggest producers that receive the best shelving.

He added that there are also benefits to consumers mainly in relation to the final product prices are published.
The rules will be applied before Christmas and New Year festivities taking advantage of these holidays thst generate high demand for products.
The existence of the manual was received in a “very good way” for producers, however, some owners supermarkets have not liked at all”, said Ortega.

Andes Agency sought to know the position of two of the largest supermarket chains in the country, Corporación Favorita (Supermaxi Megamaxi, Aki, etc.), and Corporation Rosado (My Commisariato), but did not receive a response.

What is are looking for is the benefit of small suppliers, those businesses which require timely payment will allow them to fulfill their obligations, unlike larger businesses that have greater financial leeway.
Another problem that the manual intendends to correct are practices such as requiring suppliers to deliver goods at very low cost or sometimes free when a new supermarket inaugurated, said Ortega. “This kind of abuse is absolutely forbidden,” he said.

One aspect of particular importance is the requirement that supermarkets have “at least 15% of the suppliers” from MSMEs (micro, small and medium enterprises) and popular and solidarity economy.

We also seek to control what products go on the shelves, as it usually is the biggest producers that receive the best shelving.

He added that there are also benefits to consumers mainly in relation to the final product prices are published.
The rules will be applied before Christmas and New Year festivities taking advantage of these holidays thst generate high demand for products.
The existence of the manual was received in a “very good way” for producers, however, some owners supermarkets have not liked at all”, said Ortega.

Andes Agency sought to know the position of two of the largest supermarket chains in the country, Corporación Favorita (Supermaxi Megamaxi, Aki, etc.), and Corporation Rosado (My Commisariato), but did not receive a response. Read Article