Why Tesco’s supplier fulfilment fee is a “buyer’s worst nightmare”

// Read more on Grocery Gazette

It all seems to have gone a bit wrong for Tesco over the past couple of weeks.

The complications all started with a simple letter, sent by Tesco’s chief product officer Ashwin Prasad, which told suppliers there would be “additional fulfilment charges” for products sold through its online platform and via its Booker wholesale channel.

Almost immediately – and completely unsurprisingly – Tesco came under fire from some fierce backlash.

Following widespread criticism throughout the industry, Tesco quickly changed its tune and promised Groceries Code Adjudicator (GCA) Mark White that suppliers will not be de-listed if they refuse the new ‘fulfilment fee’ system.

So how will the new fulfilment fees change the way suppliers operate – and is Tesco even able to impose them in the first place?…

Read more on Grocery Gazette


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