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The Tesco Way

Maintain Supplier Details

Tesco Operating ModelII-COM196v2.1 Page 1 of 6

Docref: Version: Author: Date issued:

II-COM196 v2.1 John Beard 22 Sep 2006

81377615.doc



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Contents1 Overview of Maintain Supplier Details .................................................... 3

2 Promises ............................................................................................... 3

3 What does good look like? ...................................................................... 3

4 Policies ................................................................................................. 4

5 Key Performance Indicators? ................................................................. 4

6 What do you need to carry out this process? ........................................... 4

7 Documented outputs ............................................................................. 4

8 Step by Step procedure ......................................................................... 4



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1 Overview of Maintain Supplier Details

Supplier details will change over time, Buyers need to ensure the change of detailsare up to date to maintain data integrity. Commercial is accountable for maintainingaccurate supplier details but the Oracle Financials (OFi) system is maintained byFinance. This overview covers the following changes:

o Account manager details

o Bank details

o Site details

o Change of address

o Payment terms

Accurate data will ensure that the stores get the correct product, at the correct pricefrom the right supplier. The buyer can see what the performance of the supplier islike, and that the suppliers margin is accurate at all times.

2 Promises

This procedure will support these promises:

- I can get what I want - The prices are good

3 What does good look like?

All data relating to a supplier are loaded in OFI, in line with the criticalpath

Any change to the supplier details is actioned at the appropriate time

The process for changing the supplier details is followed

Finance has the accountability for maintaining details on OracleFinancials.

Finance is informed of any address change; merger; going intoadministration etc.

Supplier contactlists and any change of address are maintained byCommercial and relevant departments are informed of supplier changese.g. Supply Chain.

If a supplier goes into Receivership or Administration (Chapter 11 in theU.S.), Commercial should request Finance to temporarily deactivate theSupplier in Oracle Financials. This will prevent systems attempting to re-order.

Finance will verify Bank details directly with the supplier



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Products do not get delivered to store that have not been authorised byCommercial.

4 Policies

Oracle Financials is the master database for Supplier information e.g.Payment Terms, Address, Bank Account Information etc. Commercial is

accountable for providing accurate information but accurate data entry inOFi is the accountability of Finance.

Any change of Payment Terms is negotiated by Commercial withinFinance guidelines and approved by Finance before Contracts are signedto ensure the Cash Flow within the business is controlled.

Supply Chain is accountable for the provision of accurate Supply Chaininformation.

Commercial has the accountability to ensure accurate data is input inORMS but that each function is responsible for providing accurate

information.

5 Key Performance Indicators?

Number of invoice queries

Accuracy of Buying Gross margin

Supplier data accuracy

6 What do you need to carry out this process?

Any Supplier change of address/ change of contact details

Changes to contracts, Terms & Conditions

OFi for Finance updates

7 Documented outputs

Generated by the system

8 Step by Step procedure

Step Who(Responsible)

Change of Supplier details:

1. When the supplier makes changes to their details, these must be communicated to

the Buyer immediatelya. Account manager details



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Buy > Set Up, Maintain & Develop Suppliers > Maintain Supplier Detailsb. Bank details

c. Site details

Change of address Supplier

These details are put onto the system at the appropriate time Finance

Any interdependent departments are informed immediately e.g. Finance,AdministrationSupply Chain. Buyer

Incorrect data must be changed immediately and the changes communicated

Buyer/FinanceAdmin

Other Changes:

Other Changes

Cost and retail price changes agreed between the buyer and supplier Buyer

Delivery details inform stock control via email Input the cost and retail prices intothe system BuyerBuyer/Admin

Where there are any emergency changes to take place all interdependencies are tobe informed immediately and the system will not update in time to avoid issues,

Reduction in retail price inform stores via email

Cost prices- inform finance via email

Delivery details inform stock control via email Buyer

Any change of Payment Terms is negotiated by Commercial but must be approved byFinance before contracts are amended or new contracts written Buyer/ FinanceDirector

Appendix 1 Change of Supplier Information within Oracle Financials



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