Tuesday, June 18, 2024

International news: Tesco improves supplier relations

More than 1,000 suppliers to the UK retailer have received training to help them grow their business, while Tesco buyers have completed almost 9,000 training courses in total.

At the Food and Drink Federation Convention in London this week, Tesco Chief Product Officer Jason Tarry talked about the importance of rebuilding trust and transparency with suppliers and how innovation by Tesco and its partners can help provide a compelling shopping experience for customers.

He said the retailer is focused on offering a onestop shop for customers, offering the best choice of brands and ownlabel products, as well as unbeatable quality, especially when it comes to fresh produce.

“Crucially, we want to do this by working with our partners in a simple and straightforward way which is good for our customers, good for our suppliers, and good for Tesco,” he said. “So, over the last year, we’ve put in place a number of measures to help improve the way we work with our suppliers.”

Tesco’s supplier network now has more than 5,000 members, who can share knowledge and bestpractice across a huge range of issues. Tesco suppliers and buyers have undergone training and the retailer has standardised its payment terms so that small and medium-sized businesses are paid within 14 days.

Last week Tesco introduced its Fair For Farmers Guarantee, its support for British dairy farmers. This week it announced contracts worth £12 million ($20.6 million) over three years to become the first UK retailer to introduce new longterm contracts for potato growers and packers, helping to safeguard the future of UK farmers who supply Tesco.

“It’s really encouraging to hear that our move towards long-term transparent relationships with our suppliers is being recognised,” Mr Tarry said.

A recent Groceries Code Adjudicator supplier survey included feedback from nearly 500 Tesco suppliers. Sixty-five per cent of those suppliers reported seeing an improvement in how Tesco operates, resulting in it being recognised as the most improved retailer in the survey.

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