ASDA STORES LIMITED

Standard payment terms

ASDA’s standard payment terms for all of its small suppliers are 6 days (where ASDA pays each correct invoice on our next weekly payment run following 6 days from date of receipt of the invoice) that currently applies to approximately 1,500 active suppliers. For other suppliers, ASDA’s standard contractual payment terms state that ASDA will pay each correct invoice on its next weekly payment run following 60 days (for domestic suppliers), 90 days (for non-food import suppliers) or 120 days (for GNFR suppliers) from receipt of the invoice. ASDA makes a Supply Chain Finance solution and a C2FO (dynamic discounting) early payment platforms available to its suppliers subject to capacity restrictions. These solutions allow suppliers to receive payments earlier than their standard terms. In certain specific circumstances, ASDA may agree to shorter payment terms with its suppliers as part of an overall commercial agreement.

Were there any changes to the standard payment terms in the reporting period?

Goods Not For Resale (GNFR) standard payment terms are now 120 days (where ASDA pays each correct invoice on our next weekly payment run following 120 days from date of receipt of the invoice)

Any other information about payment terms

Within ASDA’s standard contractual terms, ASDA may set off monies payable to a supplier by ASDA against any monies owed to ASDA from the same supplier. We continue to offer our early payment options including Supply Chain Finance and our C2FO platform subject to capacity restrictions. Where price discrepancies are identified, ASDA will always pay the supplier in full based on the most recently agreed cost price and will work hard to ensure that any outstanding sums are resolved as soon as possible through its rigorous query resolution process.

Maximum contractual payment period agreed

120

Has this business signed up to a code of conduct or standards on payment practices?

For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.

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Does this business offer e-invoicing in relation to qualifying contracts?

This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.

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Does this business offer supply chain finance?

This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.

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Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?

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During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?

No information available