New Tesco suppliers to get more support

17 May 2016

Tesco is creating two new teams to help make it simpler and and more transparent for suppliers to work with the food retailer.

One is a food invoice query team, which will be a single point of contact for price and invoice queries and which should help suppliers to resolve any issues more quickly. The other new team will help new suppliers during their first six months of working with Tesco.

In a blog on the Tesco website, Jason Tarry, chief product officer, said that the company had made a lot of improvements in its partnership with its network of more than 5,000 suppliers.

“I’m really pleased with the progress we’ve made, but my team and I know there’s more to do,” he said. “We need to ensure more suppliers find Tesco simple, transparent and easy to deal with and give them the confidence to invest in innovation that’s right for our customers.”

“If last year was characterised by lots of change, this year its about building on that. We’re completely focused on serving customers a little better every day, and we want to help our suppliers focus on that too.”

He added: “As many small businesses will tell you, it can be quite daunting working with a large company for the first time, so we hope suppliers can draw on our knowledge and expertise in those crucial first months.

“By building trusted and transparent partnerships, we want to free up our suppliers to concentrate on what they do best. Innovate. Use their expertise. Help us develop unique and differentiated products for our customers.

“It’s only by working more closely and simply together to grow our shared business, we can focus on the things which are important to our customers.”

In October, Tesco pledged to deliver a simpler business model for suppliers by standardising payment terms with specific concessions to help small and medium-sized businesses. It introduced payment terms of 14 days for smaller suppliers that deliver up to £100,000 worth of products in a year. Medium-sized suppliers that deliver up to £10 million, will have their accounts settled five days quicker than larger suppliers in their category.

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