Buy > Set Up, Maintain & Develop Suppliers > Maintain Supplier Details

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The Tesco Way

Maintain Supplier Details

Docref: II-COM196 81377615.doc

Version: v2.1

Author: John Beard

Date issued: 22 Sep 2006

Buy > Set Up, Maintain & Develop Suppliers > Maintain Supplier Details Tesco Operating ModelII-COM196v2.1 Page 1 of 6

Buy > Set Up, Maintain & Develop Suppliers > Maintain Supplier Details

Contents
1 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

Tesco Operating ModelII-COM196v2.1

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Buy > Set Up, Maintain & Develop Suppliers > Maintain Supplier Details

1 Overview of Maintain Supplier Details

Supplier details will change over time, Buyers need to ensure the change of details are up to date to maintain data integrity. Commercial is accountable for maintaining accurate supplier details but the Oracle Financials (OFi) system is maintained by Finance. 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 price from the right supplier. The buyer can see what the performance of the supplier is like, 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 critical path 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 Oracle Financials. Finance is informed of any address change; merger; going into administration etc. Supplier contact lists and any change of address are maintained by Commercial and relevant departments are informed of supplier changes e.g. Supply Chain. If a supplier goes into Receivership or Administration (Chapter 11 in the U.S.), Commercial should request Finance to temporarily deactivate the Supplier in Oracle Financials. This will prevent systems attempting to reorder. Finance will verify Bank details directly with the supplier

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Buy > Set Up, Maintain & Develop Suppliers > Maintain Supplier Details

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

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 in OFi is the accountability of Finance. Any change of Payment Terms is negotiated by Commercial within Finance guidelines and approved by Finance before Contracts are signed to ensure the Cash Flow within the business is controlled. Supply Chain is accountable for the provision of accurate Supply Chain information. Commercial has the accountability to ensure accurate data is input in ORMS 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 (Responsible) Change of Supplier details: 1. When the supplier makes changes to their details, these must be communicated to the Buyer immediately a. Account manager details Who

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Buy > Set Up, Maintain & Develop Suppliers > Maintain Supplier Details b. Bank details c. Site details Change of address These details are put onto the system at the appropriate time Supplier 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 into the system BuyerBuyer/ Admin Where there are any emergency changes to take place all interdependencies are to be 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 by Finance before contracts are amended or new contracts written Buyer/ Finance Director Appendix 1 Change of Supplier Information within Oracle Financials

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Buy > Set Up, Maintain & Develop Suppliers > Maintain Supplier Details

Supplier
Buyer

Tesco Operating ModelII-COM196v2.1

Agree to chan payment term

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