Tesco Enhances Supplier Payment System with RAS Good Faith Receiving Concept
In a significant move, what has taken the RAS Supply Chain Team almost 18-months to deliver from initial conversation to roll out across 11 depots, Tesco is now implementing a new system designed to ensure timely payments by relying on the accuracy of inbound deliveries. The initiative, delivered by RAS Supply Chain Integrity, is set to revolutionise how Tesco handles supplier transactions.
The Good Faith Receiving (GFR) concept operates on the principle that most supplier deliveries are accurate. The approach minimises delays in payments that typically arise from disputes over the volume of stock. Instead, any discrepancies are addressed in real-time, in a fair and trusted manner acceptable by all parties, allowing for smoother and more efficient payment processes, in line with the Groceries Supply Code of Practise (GSCoP).
An initial trial of the GFR system showed promising results, with improvements in both delivery accuracy and on-shelf availability in Tesco stores. Encouraged by these outcomes, Tesco is now expanding the system to a larger number of its chilled suppliers. Tesco suppliers will now join over 2,000 suppliers across Europe who already benefit from a new level of visibility, continued accuracy, transparency of findings by Supply Chain Integrity.
Tesco’s adoption of the RAS GFR confirms the Supply Chain Integrity concept as the industry standard, started by other Retailers. Sainsbury’s, Morrisons, and Asda introduced similar systems in 2017, with Co-op and M&S following suit shortly after.
RAS Supply Chain Integrity is the creator and innovator of the only end-to-end GFR service in the retail market across UK and Europe.
By implementing the GFR system, Tesco seeks to improve supply chain efficiency, which will be advantageous for both the retailer and its suppliers. This effort highlights Tesco’s dedication to building robust and transparent partnerships with its suppliers, ensuring prompt payments and reducing disputes.