TESCO suppliers can now cut production costs and reduce waste by selling or donating surplus stock and materials – including packaging – to other Tesco suppliers.
It comes after the supermarket launched its new Tesco Exchange online marketplace which matches suppliers who have too much of a product – such as crops, by-products, ingredients, or packaging – with other Tesco suppliers in need of it.
Suppliers can advertise surplus stock for sale on Tesco Exchange, as well as post requests for things they need and agree sales between each other. The supermarket said that it is ‘expected’ that savings in product costs will ultimately benefit customers too.
A listing has already been made on the newly launched marketplace by food manufacturer, G’s Group. A supplier of pickled beetroot to Tesco, the firm is often left with ‘tonnes’ of beetroot peelings that Tesco said could be used by a livestock farm as cattle feed.
Sarah Bradbury, Tesco quality director, said, “Excess stock or waste for one supplier could be a valuable commodity to another. By linking different farmers, producers and manufacturers together, our suppliers can find new ways to trim their bills, reduce waste, and keep delivering great value for our customers.”
Dr Julian Parfitt, technical director at Anthesis, the sustainability activator and developer of Tesco Exchange, comments, “Tesco Exchange is a great example of an initiative that the food industry needs to embrace and support in order to directly address commitments on food waste, the circular economy, and move towards more sustainable and resilient supply chains.”
