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Company number: 00519500

Reporting period:
26 August 2019 to 29 February 2020

Warning This information is as reported by the business, and responses are in their own words.

This report was filed on 30 March 2020

and approved by Alan Stewart

Payment statistics

Average time taken to pay invoices: 41 days

Invoices paid:

Invoices due but not paid within agreed terms: 3 %

Payment terms

Shortest standard payment period

14 days

Longest standard payment period

90 days

Standard payment terms

For Goods for Resale
1. Fruit, Veg, Meat, Fish, and Poultry : 28 Days
2. Chilled, Convenience, Frozen & pet care: 35 Days
3. Dairy: 40 Days
4. Bakery, Grocery, Household, Health & Beauty: 45 Days
5. Wine, Beer & Spirits: 60 Days
6. Clothing and General Merchandise (UK sourced): 60 Days
7. Clothing and General merchandise (overseas sourced) 85 Days
8. Goods Not for Resale (procurement) 45 Days

a) The above apply for an Annual business with Tesco of GBP 10 Mn or more
b) Annual business with Tesco of GBP 100K to GBP 10 Mn - 5 days less
c) Annual business with Tesco which is Less than GBP 100K - 14 Days

For Goods Not for Resale
a) Annual business with Tesco of more than GBP 250K - Payment terms of 45 days
b) Annual business with Tesco is Less than GBP 250K - 14 Days

Were there any changes to the standard payment terms in the reporting period?

Yes – A change in payment practices relating to GSNFR suppliers with an annual spend of £250,000 and above has been implemented effective 9 January 2020 for End of Accumulation Periods (“EOAP”) where invoices are accumulated and paid twice a month. The primary purpose of this change is to focus on improved efficiency and better predictability of supplier payments. This in turn will assist in creating an improved payment experience and minimise disruptions

Were suppliers notified or consulted about these changes before they were made?

Yes – All suppliers were communicated through email and a process was set up to manage queries.

Maximum contractual payment period agreed

90 days


Any other information about payment terms


Dispute resolution process

Tesco manages queries from Suppliers & ensures that the queries are resolved accurately within SLA.
We have a dedicated team to manage queries.

All queries are managed through an incident management tool.

Vendor Queries are received through a generic email ID and tickets are created and logged with mandatory documents which would get routed to the right work group as per the designed workflow (These tickets have a SLA of 7 days for them to be resolved)

All tickets are closely monitored to ensure there a no breaches

If there is a dispute, we would call/email the relevant vendors and follow up with an email to resolve. All queries raised by vendors are usually resolved within 7 days.

We have an escalation matrix which is shared with all vendors.

We conduct periodic governance on the performance of the query team to ensure that queries are resolved timely and satisfactorily, thereby ensuring a build-up of invoices on hold is avoided and vendors are paid accurately.

We also have a dedicated Supplier Helpline and an email to answer or support on any queries / concerns reported. The line is open Monday to Friday 9am-5pm.

Other payment information

Has this business signed up to a code of conduct or standards on payment practices? If so, which?

For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.

Yes – GSCOP and Prompt Payment code

Does this business offer e-invoicing in relation to qualifying contracts? This is where suppliers can electronically submit and track invoices. It’s not just allowing suppliers to email them an invoice.


Does this business offer supply chain finance? This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.


Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?


During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?