GOV.UK
TESCO DISTRIBUTION LIMITED
Company number: 02972724
Reporting period:
1 March 2021
to 29 August 2021
This report was filed on 28 September 2021
and approved by Robert Welch
Payment statistics
Average time taken to pay invoices: 44 days
Invoices paid:
- within 30 days: 16%
- in 31 to 60 days: 79%
- in 61 days or more: 5%
Invoices due but not paid within agreed terms: 2 %
Payment terms
Shortest standard payment period
5 days
Longest standard payment period
45 days
Standard payment terms
5 days – small suppliers with up to £250,000 (inclusive of VAT) of business with the Company each year.
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?
Yes – 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 5 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 have made this change permanent. 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.
Were suppliers notified or consulted about these changes before they were made?
Yes – 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 5 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 have made this change permanent. 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.
Maximum contractual payment period agreed
45 days
N/A
Any other information about payment terms
N/A
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.No
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