ASDA STORES LIMITED

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). 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.

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.

If an ASDA supplier raises a query in respect of an outstanding invoice, payment or deduction, in the first instance it is handled by the Accounts Payable team through a clear query process, which works on a 7 working day SLA from receipt of all relevant supporting documentation. If necessary, the Accounts Payable team will refer to other business areas within ASDA (for example stores, depots or merchants) to resolve the enquiry. If the matter remains unresolved within the target turnaround time, it may be escalated to senior leadership.