TESCO STORES LIMITED
Company number: 00519500
Reporting period:
1 March 2020 to 29 August 2020
Report filed on:
28 September 2020
Approved by:
Alan Stewart
Payment statistics
Average time taken to pay invoices: 40 days
Invoices paid:
- within 30 days: 13%
- in 31 to 60 days: 85%
- in 61 days or more: 2%
Late and disputed:
- payments due in the reporting period which have not been paid within the agreed period: 3%
Payment terms
Shortest standard payment periods
14 days
Longest standard payment period
90 days
Standard payment terms
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) 90 Days The above apply for turnover of GBP 10 Mn or more GBP 100K to GBP 10 Mn - 5 days less Less than GBP 100K - 14 Days Goods Not for Resale (procurement) 45 Days The above apply for turnover of GBP 10 Mn or more GBP 100K to GBP 10 Mn - 5 days less 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?
Answer not provided
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
90 days
NA
Any other information about payment terms
We recognised that the pandemic has been a particularly challenging time for our smaller suppliers, so between April and June 2020 we temporarily shortened their payment terms from 14 days to five days. In practice, we initiated payment of invoices immediately, with funds clearing within five working days. Once it became clear that this support continued to be necessary, we extended the change to the 16th August and have now extended this to 31st January 2021. This affected all suppliers with up to £250,000 worth of purchases, benefitting more than 1,000 UK suppliers across goods for resale and goods not for resale. For goods and services not for resale a vendor financing solution has also been made available to suppliers allowing them to take earlier payments where needed.
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, this business has signed up to: GSCOP, 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.
Yes
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.
Yes
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?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No