The UK’s biggest supermarket chain has responded to criticism by pledging to speed up payments to its suppliers.
Tesco’s chief executive, Dave Lewis, said that from next June the company would ensure that payments to its smallest suppliers that deliver up to £100,000 of products annually went out within 14 days. He also promised a “simpler” payment model for the 2,000 firms that supply Tesco, which include a number of small family-owned businesses.
Medium-sized suppliers providing up to £10m of products per year, will have their accounts settled within 23 days and major suppliers will have to wait no more than 28 days.
The company hopes that the move will improve its reputation after accusations were made that it deliberately delayed payments, employed unacceptable methods in booking commercial income from suppliers and routinely flouted industry standards on payments.
Individuals and corporates can now make instant euro credit transfers between accounts across a region that will be extended to over 34 European countries.
The Nordic island country is taking action against the UK supermarket chain that has used the same name for nearly 50 years.
An Oliver Wyman report notes “unprecedented change” and forecasts annual growth of 7% to the end of the decade helped by new types of payment.
Economies around the world have made further progress in simplifying and reducing the demands of tax compliance, reports The World Bank Group.