TESCO DISTRIBUTION LIMITED
Company number: 02972724
Reporting period:
30 August 2020
to 28 February 2021
This report was filed on 29 March 2021
and approved by Robert Welch
Payment statistics
Average time taken to pay invoices: 41 days
Invoices paid:
- within 30 days: 19%
- in 31 to 60 days: 80%
- in 61 days or more: 1%
Invoices due but not paid within agreed terms: 2 %
Payment terms
Shortest standard payment period
14 days
Longest standard payment period
45 days
Standard payment terms
14 days – small suppliers with up to £250,000 (inclusive of VAT) of business with the Company each year.
30 - 45 days – large suppliers, greater than £250,000 (inclusive of VAT) of business with the Company each year. The business has standardised payment terms across each category.
Were there any changes to the standard payment terms in the reporting period?
No
Maximum contractual payment period agreed
45 days
NA
Any other information about payment terms
We recognised that the pandemic has been a particularly challenging time for our smaller suppliers, so up until March 2022 we have temporarily extended shortened payment terms (from 14 days to 5 days). This was initiated in February 2020and covered all suppliers with up to £250,000 worth of annual spends, benefitting more than 200 UK suppliers.
Dispute resolution process
The business manages all queries through an incident management tool and has a dedicated team to manage queries.
If there is a dispute, the business will call/email the relevant vendors and follow up with an email to resolve. All queries raised by vendors are usually resolved within 3 days.
The business has an escalation matrix which is shared with all vendors.
The business conducts periodic governance reviews 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.
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 – 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