TESCO FAMILY DINING LIMITED

Company number: 08514605

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: 40 days

Invoices paid:

• within 30 days: 25%
• in 31 to 60 days: 70%
• in 61 days or more: 5%

Invoices due but not paid within agreed terms: 4%

Payment terms

Shortest standard payment periods

5 days

Longest standard payment period

45 days

Standard payment terms

5 days 30 days 45 days

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

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?

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

Most of the suppliers are paid on 45 days payment terms as per Tesco Standard Terms. However, there are a few suppliers that are set up for 5 days and 30 days.

Any other information about payment terms

N/A

Dispute resolution process

The business manages all queries through a generic mailbox with a dedicated team. If there is a dispute, the business calls the relevant vendor and follow up with an email to resolve the matter. All queries are usually resolved within 7 days. The business has an escalation matrix which is shared with 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, this business has signed up to: GSCOP

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.

No

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