Tesco worst at following grocery code of practice - Tracy Ewen, managing director of IGF Invoice Finance, comments
Tracy Ewen, managing director of IGF Invoice Finance, comments on the Grocery Code Adjudicator’s (GCA) survey revealing that Tesco suppliers say retailer worst at following grocery code of practice
“30% of direct suppliers saying Tesco rarely complies with the industry code is a true reflection of the grocery industry’s attitude over recent months. The top two issues raised by suppliers in the GCA’s survey were delays in payments and changes in contract terms. The payment terms that many suppliers in the UK are subjected to today, would mean that goods delivered today wouldn’t need to be paid for until late Autumn. Clearly for many small businesses this isn’t a practice that’s sustainable, but it is a reality that they have very little power to change.
Suppliers are still waiting for the detail of Sajid Javid’s Small Business Conciliation Service, which has been promised as part of the new Enterprise Bill, and will help small businesses tackle these unfair terms.
In the meantime, there are options available that cover the gap between work completed and money in the bank. It’s therefore important for firms to thoroughly review their options and make use of any free financial advice that their own financial partners and suppliers can offer before pressure from large customers impacts their growth or operations.”