Tesco Service Level Agreement

Before the new agreement came into effect in 2014, the relationship could be “transactional,” “remote” and “much more complex,” said Jon Hedge, AMT`s chief commercial officer. With multiple suppliers “with their own supply chains, there was no possibility to use scale in the most efficient way.” Responsible procurement criteria are also integrated into business audits, when awarding new contracts and throughout the bidding process. Business evaluations are based on three pillars weighted in the same way: price, quality and service. Responsible purchasing is in the quality column and, for priority products, a member of the sourcing team will check each supplier and advise the supplier`s performance from a responsible purchasing perspective. The Responsible Sourcing Director is also required to approve any new supplier or important new contact to ensure that responsible purchasing is taken into account. Ultimately, the Responsible Sourcing Director may refuse a supplier if there is evidence that they have not committed to sourcing responsibly. SLAs are different from PCCs. SLAs are documents describing broader service agreements between a service provider and its customers, while ICPs are typically used to measure the performance of companies against their strategic objectives. However, PCCs can be part of an SLA to measure the availability of defined service standards. If an SLA exists, the service provider and the client would regularly evaluate, communicate and adapt the measures to comply with the agreement. While an SLA can be part of a legal contract, a contract is not necessarily an SLA, as contracts can be entered into without outlining any level of service.

Our UK employment service providers are registered with the Gangmasters Labour and Abuse Authority and are allowed to actively recruit outside the UK without Tesco`s prior consent, as recruiting people who have moved independently to the UK and have the right to work here reduces the risk of human trafficking and exploitation. We work with our service providers to ensure that all agency workers receive a reasonable number of paid hours per week and have the opportunity to transition to permanent employment in the event of a job vacancy. Our human rights supply chain programme covers everything we do for our own brand, including exclusive Tesco brands, services and products that are not intended for resale to our customers. In our direct activities, our risk assessment process has established that the most significant risks are the forced labour of service providers such as temporary workers in distribution, office cleaners or car washes. This is due to the considerable proportion of migrant workers in these sectors, in many of the countries where we operate, who may be less aware of their rights and are more vulnerable to abuse. It is also because we have a less direct view of these areas compared to the sectors where we directly employ labour. The AMT, which supplies 20 million cases of citrus, grapes, pineapples and melons to Tesco and will kill around £250 million this year, is another advantage. As part of the AMC Fresh Group, it was established in 2014 as part of a new supplier agreement with Tesco to focus exclusively on Tesco and supply mainly Great Britain, but also subsidiaries in Europe and Asia.

For a service provider, this often means that the metrics defined in its ESAs will become important PPAs that it will monitor and report as indicators of its overall strategic performance. You can find more examples of our work in the supply chains of our premium products under www.tescoplc.com/sustainability/planet/top-20/. Work on these topics is led by the Responsible Sourcing Team. . . .