Tesco admit to unfair practices with suppliers
Tesco has admitted 'a number of instances of probable breaches' of the Groceries Supply Code of Practice, in their 2015 Annual Report.
The code sets out how designated retailers are expected to fairly manage their relationships with suppliers, including obligations for retailers to pay their suppliers without delay.
Some suppliers, however, may be reluctant to notify breaches, or take collection action for overdue debt, for fear of losing a lucrative deal.
Credit insurance can prove to be a useful lever in difficult situations such as these, as a supplier will have to comply with the terms of their policy regardless, including notifying overdue debts to the underwriters.
Customers will be aware that such notifications can have an adverse effect on their credit ratings with the insurers and affect other supply chains.
Every little helps!
https://www.gov.uk/government/publications/groceries-supply-code-of-practice