Tesco has promised Groceries Code Adjudicator, Mark White that suppliers will not be de-listed if they refuse its new fulfilment fee system.
White told The Grocer that he had looked into the actions of the UK’s largest supermarket following a number of complaints from suppliers, calling on them to show evidence if Tesco had breached the Groceries Supply Code of Practice.
The new Amazon-style ‘fulfilment fees’ came into play earlier this week and were explained to suppliers in a letter.
Understood to be at 12p per item for branded goods and 5p for own-brand, the charges will be applied to each item sold via Tesco.com and Tesco.ie, as well as through Tesco’s app to help cover rising online costs.
Howevery yesterday, suppliers and farmers warned that new fees could risk the survival of their businesses.
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While Tesco originially claimed that anyone not willing to comply with the charges could face the threat of range reviews of reduced prices, it has since said that each cost can be negotiated with suppliers.
To discuss the new charges, White is set to meet with Tesco’s code compliance officer, David Ward this week.
“Whenever one of my retailers makes a change that could potentially affect or does effect suppliers, I engage with that retailer to make sure it doesn’t fall foul of the code,” White told The Grocer.
“That’s all part of my collaborative approach and that’s exactly what I have been doing, and will continue to do, in response to this proposed introduction of fulfilment fees.”
He added that Tesco had told him that the fulfilment fee is “voluntary” and that “no one will be delisted if they refuse to agree or refuse to negotiate.”
“But obviously it is really important that I hear form suppliers about their experience as part of my continued engagement with Tesco.”
