Published reports

ASDA STORES LIMITED

Company number: 00464777

This information is as reported by the business, and responses are in their own words.

Reporting period:

1 January 2018 to 30 June 2018

Report filed on:

17 July 2018

Approved by:

Alejandro Russo

Payment statistics

Average time taken to pay invoices: 44 days

Invoices paid:

within 30 days: 23%
in 31 to 60 days: 67%
in 61 days or more: 10%

Late and disputed:

payments due in the reporting period which have not been paid within the agreed period: 5%

Payment terms

Shortest standard payment periods

14 days

Longest standard payment period

90 days

Standard payment terms

Asda’s standard payment terms for all of its small suppliers are 14 days which currently applies to more than 1700 suppliers. For other suppliers, Asda’s standard contractual payment terms state that Asda will pay each correct invoice on its next weekly payment run following 60 days (for domestic suppliers) or 90 days (for non-food import suppliers) from receipt of the invoice. Asda makes a Supply Chain Finance solution available to its suppliers which allows suppliers to receive payments earlier than their standard terms. In certain specific circumstances, Asda may agree to shorter payment terms with its suppliers as part of an overall commercial agreement.

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

Asda will pay each correct invoice on its next weekly payment run following 90 days from receipt of invoice.

Any other information about payment terms

In February 2018 Asda notified a limited number of its suppliers (certain non-food import suppliers) of its intention to change payment terms, but such changes have not yet been implemented. Asda also reminded these suppliers of the availability of Supply Chain Finance, which enables suppliers to receive payment sooner and quicker than Asda’s standard terms payment period. Within Asda’s standard contractual terms, Asda may offset monies payable to a supplier by Asda against any monies owed to Asda from the same supplier.

Dispute resolution process

If an ASDA supplier raises a query in respect of an outstanding invoice, payment or deduction, in the first instance it is handled by the Accounts Payable team. Queries are handled through a clear process, which works on a 10 working day SLA from receipt of all relevant supporting documentation. If necessary the Accounts Payable team will refer to other business areas within Asda (for example stores, depots or merchants) to resolve the enquiry. If the matter remains unresolved within the target turnaround time, it may be escalated to senior leadership.

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: The 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?