TESCO STORES LIMITED
Company number: 00519500
30 August 2020
to 28 February 2021
This report was filed on 29 March 2021
and approved by Alan Stewart
Average time taken to pay invoices: 41 days
- within 30 days: 13%
- in 31 to 60 days: 85%
- in 61 days or more: 2%
Invoices due but not paid within agreed terms: 3 %
Shortest standard payment period
Longest standard payment period
Standard payment terms
Good 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) 90 Days
The above apply for turnover of GBP 10 Mn or more
GBP 250K to GBP 10 Mn - 5 days less
Less than GBP 250K - 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?
Maximum contractual payment period agreed
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 February 2022. 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 are 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, 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?