OUR pROdUct RUles - cdn.launchandlearn.co.uk · before product launch, and those we follow after...

OUR pROdUct RUles

The principles for how our products are made and sold to meet our customers expectations. They are designed to help you understand why they matter and what they mean to you.

June 2015

Our customers expect us to only sell products made to the highest quality

and that are responsibly sourced. They trust us to ensure that all

our products are safe and comply with all applicable laws and regulations. These rules apply in all markets in which our products are sourced and sold.

WelcOme TO Our

pROdUct RUles

Nothing is more important to us than the trust of our customers.

To ensure that every customer experience is a positive one we need to make sure our colleagues and suppliers are clear about our expectations for product safety, legality, quality and responsible sourcing.

The Product Rules set out very simply what our non-negotiable requirements are at each stage of the product lifecycle.

By understanding and following these rules we will ensure a consistency in the approach we take to managing our products and suppliers, thereby achieving a great product offer for our customers.

tim J smith QUality diRectOR

NOthiNg is mORe impORtaNt tO Us thaN the tRUst Of OUR cUstOmeRs

Product Rules 0302

The rules are split into three groups, those which must be followed at all times, those which must be followed before product launch, and those we follow after product launch.

Accountabilities

Our quality and buying colleagues will work collaboratively with each other and our suppliers to ensure these rules are followed.

Our central Quality Team:

1. Set the policies and standards relating to our products and suppliers.

2. Own and monitor the delivery of the Product rules.

3. Develop the tools to train our people and suppliers.

Our colleagues in the Commercial Product teams will:

1. Implement the Product rules with their colleagues and suppliers.

2. Demonstrate compliance to the Product rules through monitoring and reporting.

In addition to the Product rules we have our technical policies, standards, requirements and guidance which provide more detail on how to comply with the Product rules in particular areas. All of these documents can be found on our Tesco Technical library.

HOW TO uSe Our

pROdUct RUles

Product Rules 0504

Rule 1 Capability and Training colleagues who have an impact on product safety, legality, quality and responsible sourcing must be trained and competent to perform their roles.

Rule 2 Managing External Service Providers We must ensure any third parties we use are approved and their performance monitored.

Rule 3 Emerging Issues, Legislation and Policy We must keep up to date with emerging issues and regulatory changes to ensure appropriate actions can be taken in the business.

Rule 4 Sourcing, Buying, Selling and Exports Where products are sourced for, or sold to more than one Tesco business, accountabilities for delivering the Product rules must be clearly defined.

Rule 5 Liability and Product Risk We must identify the risks and apply the appropriate procedures for managing all safety, legality, quality and responsible sourcing requirements for all products.

Rule 6 Product Development, Information and Design. We must ensure all labels, specifications, product information and packaging meet Tesco’s requirements and do not infringe the rights of any third party.

Rule 7 Supplier and Site Approval Sites must be approved to our technical and responsible sourcing requirements before production starts. Tesco terms and conditions must be signed by the supplier.

Rule 8 Product Testing We will ensure compliance with our policies and the safety, legality and quality of our products by having the right testing in place.

Rule 9 Production Trials and First Production Runs We must confirm the capability of our suppliers to make the product to the agreed specification.

Rule 10 Good Product Handling Through Retail and Distribution We must ensure our products are correctly handled throughout distribution, stores and dotcom centres.

Rule 11 Ongoing Product Management We must ensure that all of our products continue to meet our requirements for safety, legality, quality and responsible sourcing.

Rule 12 Ongoing Supplier Management We must monitor compliance to our standards and develop strong relationships with our suppliers to deliver continuous improvement.

Rule 13 Product Withdrawals, Recalls and Regulatory Compliance We must ensure products which pose a risk to our customers or our reputation do not remain on sale and we manage enforcement challenges.

Rule 14 Customer Feedback customer feedback and trends must be monitored and appropriate action taken to resolve any issues.

Rule 15 Performance Monitoring and Review We must continually review product and supplier performance to uphold compliance and identify opportunities for improvement.

WHere Our PrODucT

RUles aRe appliedAT ALL TIMES BEFORE PRODuCT LAuNCH AFTER PRODuCT LAuNCH

QUality is at the heaRt Of what we dO

Product Rules06 07

at all timesFOllOW THeSe ruleS TO PrOvIDe A rObuST FOunDATIOn FOr Our buSIneSS

Product Rules 0908

rule 01 capabilityaNd tRaiNiNg

rule 02 maNagiNg exteRNal seRvice pROvideRs

What Good Looks Like

contracts are in place for all external parties which provide services directly for Tesco.

The performance of external parties is monitored and action taken to resolve issues.

What does it mean for me

Potential second and third parties* must demonstrate the required level of competence (through qualifications and/or experience) prior to being contracted to work for Tesco. This is applicable whether contracting with external individuals or organisations.

A contractual Agreement and Service level Agreement must be in place between Tesco and the second / third party.

Performance of the second / third party must be monitored on an ongoing basis.

colleagues who have an impact on product safety, legality, quality and responsible sourcing must be trained and competent to perform their roles.


Our colleagues are trained to ensure they are competent to perform their roles.

evidence of understanding is recorded.

The performance of our colleagues is monitored and training needs identified (and addressed) on an ongoing basis.


colleagues must have the relevant qualifications and experience to perform their role.

Qualifications and experience must be verified.

effective training programmes must be in place.

Training needs must be continually reviewed.

All colleagues must have a comprehensive and appropriate induction into their role.

We must ensure any external service providers we use are approved and their ongoing performance monitored.

*Second party – A supplier or service provider under direct control and management by Tesco, working to Tesco criteria. *Third party – A supplier or service provider who is not directly controlled by Tesco and is considered independent from Tesco.

a team that is the eNvy Of the iNdUstRy

we ONly wORk with appROpRiately QUalified exteRNal paRties

Product Rules 1110

We must keep up to date with emerging issues and regulatory changes to ensure appropriate actions can be taken in the business.

Where products are sourced for, or sold to more than one Tesco business, accountabilities for delivering the Product rules must be clearly defined.

rule 03 emeRgiNg issUes, legislatiON aNd pOlicy

rule 04 sOURciNg, bUyiNg, selliNg aNd expORts


All relevant parties are informed of new legislation.

The impact from new legislation is minimised.

Appropriate policies and procedures are in place to meet regulatory requirements.

Stakeholders are aware of existing (and new) policies which impact their area.


Accountability and responsibility for complying with each Product rule will be defined.

All Tesco businesses are aware of their accountabilities.


A system must be in place to review emerging issues and legislation changes.

external stakeholders and regulators must be engaged i.e. Government Agencies and non-Government Agencies (nGOs).

Any impact on Tesco must be identified and minimised, wherever possible.

business stakeholders must be consulted on the review and development of Tesco policies; once changes to policies have been agreed, the changes, and implementation requirements, must be communicated to all relevant stakeholders.


The accountabilities for delivering each of the Product rules must be clearly defined and documented for any products which are supplied to more than one Tesco business.

Accountabilities must be split between the sourcing function and local technical teams, as appropriate to the particular rule.

All participating businesses must be aware of their specific accountabilities, through each stage of the product lifecycle.

we actively eNgage with RegUlatORs tO UNdeRstaNd aNd iNflUeNce fUtURe legislatiON

OUR pROdUcts meet QUality, safety aNd legality staNdaRds fOR the maRkets wheRe they aRe sOld

Product Rules 1312

befORe pROdUct laUNchWe muST IDenTIFy POTenTIAl rISkS AnD enSure cOnTrOlS Are In PlAce TO mAnAGe THe SAFeTy, leGAlITy AnD QuAlITy OF PrODucTS We lAuncH

Product Rules 1514

We must identify the risks and apply the appropriate procedures for managing all safety, legality, quality and responsible sourcing requirements for all products.

rule 05 liability aNd pROdUct Risk


All products assessed.

Appropriate safety and legality procedures followed.

Assessment carried out and where appropriate, an action plan in place.

Approved independent experts consulted where needed.

All risks have been appropriately managed through product design and/or manufacturing controls.


liability: All Tesco own brand products must follow these rules.

Tesco own brand products are those which:-• carry the Tesco name and address on the label.• Are brands owned or exclusively licensed by Tesco

e.g. F&F, Technika.• loose unlabelled food such as fruit and vegetables.

All other products must be risk assessed and the appropriate procedures followed to manage the risk. refer to the ‘brand and Product risk management Process’, which is available on the Technical library.

For Grey Goods* contact the legal team for guidance on liability risk.

Product risk: All Tesco own brand products must be assessed for risks relating to safety, legality, quality and responsible sourcing by a competent person which may be the Technical manager or an approved expert.

Steps must be taken to ensure risks are managed through appropriate product design and/or manufacturing controls. Any risks identified must be addressed in the product specification.

* Grey Goods are branded goods which are sourced in one country and sold in another outside the manufacturers normal distribution network.

Product Rules 1716

rule 06 pROdUct develOpmeNt, iNfORmatiON aNd desigN


no successful challenges on the labelling of Tesco brand products.

no customer complaints relating to excess product packaging; no issues with products due to packaging that is not ‘fit for purpose’.

no successful packaging-related challenges relating to:

• excessive packaging.• misleading packaging.• Presence of heavy metals above the maximum permitted levels.

corporate packaging reduction targets achieved.


All products must have a Tesco Product Specification. The specification must be formally agreed with the supplier.

Packaging safety tests will be completed to confirm it is safe and fit for purpose when required. The packaging must be recyclable (or suitable for recovery by other means).

The specification must address all identified product risks, as well as ensuring compliance with Tesco Policy and regulatory requirements.

Suppliers must not be asked to replicate the design of a brand or benchmark.

All product information supplied to customers must be correct and fit for purpose for the intended country of sale.

An Intellectual Property (IP) assessment must be carried out; if there are any potential risks of infringement, the corporate and legal Affairs Team IP manager (or designated IP expert in each market) must be consulted.

Instruction manuals provided with products must be clear, concise and easy to follow by the user. Tesco colleagues must have used or trialled them.

new and distinctive brand names or logos that are to be used for two years or more must be checked by the IP manager (or designated IP expert in each market) e.g. Healthy living, F&F.

Packaging must be designed to be the optimum that ensures the safety, legality, quality and integrity of the product throughout the distribution chain.

Original designs, inventions or artwork developed by Tesco must be presented to the IP manager (or designated IP expert) in each market to assess the possibility of registration.

Transit trials must be completed where required to establish the packaging is fit for purpose.

We must ensure all labels, specifications, product information and packaging meet Tesco’s requirements and do not infringe the rights of any third party.

all pROdUct iNfORmatiON mUst be accURate aNd legal

Product Rules 1918

Sites must be approved to our technical and responsible sourcing requirements before production starts. Tesco terms and conditions must be signed by the supplier.

rule 07 sUpplieR aNd site appROval


All sites that supply Tesco must have demonstrated their ability to comply with Tesco standards and requirements.


All sites directly supplying the finished product to Tesco must be audited against the relevant technical and ethical standards; in some situations, an audit may also be required further upstream of the direct supplying site. Full details are available from the Audit requirements document on the Tesco Technical library.

The audit must be conducted by a Tesco approved provider, to confirm that the site meets the relevant technical and ethical standards and is capable of manufacturing the intended product.

critical non-conformances (as defined in the audit requirements document) must be closed out before the manufacture of a Tesco product can start. major non-conformances must have an agreed action plan in place. The site must be able to demonstrate progress on the agreed action plan before production can start.

Third party audit certificates to industry standards are not accepted in lieu of a Tesco audit. If the site already has certification to a third party standard, the full report needs to be made available to Tesco.

All sites must be audited, regardless of whether another site owned by the same supplier is already supplying Tesco.

We must ensure compliance with our policies and the safety, legality and quality of our products by having the right testing in place.

rule 08 pROdUct testiNg


Products developed are fit for purpose.

no post launch issues as a result of inadequate or inappropriate development testing; this includes enforcement challenges, product withdrawals, customer complaints and/or failed product surveillance testing results.


relevant Product testing must be completed to establish that the product is safe, legal and meets all Tesco Policy requirements (e.g. Shelf life Testing, nutrition, claim Substantiation, legal Testing, Toy Tests, new lines Testing (Quality), Fitness for Purpose Testing, red Seal).

Test reports must be reviewed to verify compliance.

OUR sUpplieRs aRe tReated faiRly aNd theiR emplOyees aRe tReated deceNtly

Product Rules 2120

We must confirm the capability of our suppliers to make the product to the agreed specification.

rule 09 pROdUctiON tRials aNd fiRst pROdUctiON RUNs


Production trials must be completed where required to establish a supplier’s capability to manufacture the product.

A system must be in place to ensure first production runs of product meet requirements. This may include the following:-

• ensuring a Tesco representative is present for first production and/or subsequent production runs.

• Pre-shipment inspections. • Arranging for representative samples for positive release.• use of green seal samples for General merchandise or

clothing products.

required samples must be taken and retained for future reference by the category.


First production runs of all new products comply with agreed specifications.

Technical manager should attend first production run, where practical to do so.

reference samples taken should comply with agreed specification and are representative of the first production run.

We must ensure our products are correctly handled throughout distribution, stores and dotcom centres.

rule 10 gOOd pROdUct haNdliNg thROUgh Retail aNd distRibUtiON


Products on sale meet the required quality and safety standards.

no enforcement challenges or customer complaints as a result of poor risk assessment or inadequate operational controls.

Products made in store are safe and legal.


We define the processes and systems to be used in store and distribution channels to ensure product quality, safety and legality which are based on risk assessment of hazards.

Operational and training manuals must be in place for the merchandising and handling of all products, as well as for products made in store.

For products made in store, the Tesco Product rules must be applied for the purchase and management of ingredients used, to ensure compliance with safety, legality, quality and ethical requirements.

We will specify design standards that ensure the equipment used in stores meets the requirements for product quality, safety and legality.

We will monitor the effectiveness of our systems and processes through the use of an audit programme. Where non-conformances are identified action will be taken to improve performance.

we aRe cONfideNt OUR sUpplieRs caN make pROdUcts tO the agReed specificatiON

safety, QUality aNd legality is assURed fOR all pROdUcts we sell

Product Rules 2322

afteR pROdUct laUNchWe muST mAnAGe THe OnGOInG SAFeTy, leGAlITy AnD QuAlITy OF THe PrODucTS We Sell by enSurInG We Only WOrk WITH SuPPlIerS meeTInG Our reQuIremenTS

Product Rules 2524

rule 11 ONgOiNg pROdUct maNagemeNt


All products tested at the required frequency and in accordance with the product risk assessment.

corrective action plans implemented for out of specification results, to drive improvement and reduce the number of fails.

enforcement challenges (relating to product testing and monitoring) are successfully resolved.

Authorities accept our surveillance programme meets the legal requirements.

All products have an up to date specification in place.

All products have testing regimes, as appropriate to the potential risks.

Out of specification products are identified and corrective action plans implemented.

no recurrences of the same issue.

Improvements and changes in our competitors’ offer are tracked.


To ensure product safety and legality, a product monitoring programme must be put in place (e.g. microbiological testing, chemical testing), based on the product risk assessment and supplier performance.

Specifications must be reviewed a minimum of every two years to ensure they are correct and current.

The product must be reviewed to ensure it is continually supplied to specification through either testing, quality inspections in depot or third party pre-shipment inspections.

To test the quality of a product, a process must be in place to track the market and ensure a benchmark is selected that is appropriate for the product (market review). The product shall be regularly reviewed against the defined benchmark.

Test results must be shared with suppliers and corrective action plans put in place as appropriate.

We must ensure all products continue to meet our requirements for safety, legality, quality and responsible sourcing.

Up-tO-date pROdUct specificatiONs sO OUR cUstOmeRs eNJOy the same high QUality pROdUcts eveRy time

Product Rules 2726

rule 12 ONgOiNg sUpplieR maNagemeNt


All sites are audited as per required schedule.

All non-conformances are closed off within the required timelines.

Sites continually show improvement in technical and ethical performance.

Poor performing suppliers are managed more closely to drive improvement.

There is evidence of continuous development as a result of site visits, including the effective delivery of any corrective action plans.


All sites directly supplying a finished product to Tesco must undergo regular audits against the relevant technical and ethical standards to ensure ongoing compliance to the standards.

The frequency of ongoing audit must be in accordance with Tesco requirements. These are based on consideration of product and supplier risk and performance.

non-conformances found during the audit lead to corrective action plans. corrective actions must be verified to close the audit.

A visit plan must be in place based on supplier and product performance, as well as industry/market developments to ensure we continually monitor suppliers and sites.

key observations and next steps from meetings and visits must be recorded for future follow up as needed.

We must monitor compliance to our standards and develop strong relationships with our suppliers to deliver continuous improvement.

we ONly wORk with sUpplieRs whO meet OUR staNdaRds

Product Rules 2928

We must ensure products which pose a risk to our customers or our reputation do not remain on sale and we manage enforcement challenges.

rule 13

pROdUct withdRawals, Recalls aNd RegUlatORy cOmpliaNce


Systems must be in place to identify and report any potential safety, legality, quality and labelling issues.

A risk assessment approach must be used to establish whether product should be removed from sale and/or recalled from customers.

corrective action plans must be put in place to resolve the issue which may include an emergency product withdrawal or product recall, as appropriate.

A system must be in place for managing enforcement challenges in our retail and distribution channels.

The teams accountable for the product and supplier management must be informed of any serious safety, legal or labelling challenges which arise.

Suppliers must be informed of any serious safety, legal or labelling challenges arising on products they supply.

corrective action plans must be put in place by the supplier to prevent any recurrence.


no unsafe, illegal or poor quality products on sale.

no enforcement challenges or customer complaints relating to products that should have been withdrawn from sale or recalled from customers.

enforcement challenges are monitored and issues resolved through supplier action plans and next steps.

reduction in enforcement challenges year on year.

customer feedback and trends must be monitored and appropriate action taken to resolve any issues identified.

rule 14 cUstOmeRfeedback


customer feedback is monitored and issues resolved through supplier action plans and next steps.

reduction in complaints.


Systems must be in place to capture feedback from customers (e.g. complaints, returns) and to ensure technical teams are made aware of feedback received.

complaint levels must be monitored and action taken where necessary (e.g. emergency product withdrawal or product recall).

Suppliers must be informed of complaints relating to products they supply or supplied by them and corrective action plans put in place to prevent recurrence.

UNsafe, illegal OR pOOR QUality pROdUcts aRe RemOved fROm sale

we maNage aNd RespONd tO OUR cUstOmeR cOmplaiNts

Product Rules 3130

We must continually review product and supplier performance to uphold compliance and identify opportunities for improvement.

rule 15 peRfORmaNce mONitORiNg aNd Review


Performance indicators must be defined and monitored that relate to the risks associated with the supplier, sites and products.

Targets must be agreed and performance reviewed with suppliers.

next steps and corrective action plans must be put in place wherever supplier performance requires improvement.

Product and supplier performance must be reviewed by the business leadership team, at an appropriate frequency to drive improvement.

reports showing compliance with the Tesco requirements must be reviewed by the local compliance committee, as per agreed schedule (minimum annually); where compliance gaps are identified, actions must be agreed to address these.

compliance reports must be produced annually by each country for submission to the Group compliance committee.


required standards for product, suppler and site performance are agreed and understood.

key Performance Indicator (kPI) and compliance reports in place and demonstrate improvement in performance, over the agreed review period.

data helps Us tO Review the peRfORmaNce Of OUR sUpplieRs aNd dRive impROvemeNt wheRe Needed

Product Rules 3332

NOtes

wheRe caN i fiNd OUt mORe?

See the Tesco Technical library or check our Product Quality Hub site.

Talk to a member of the Product Quality team, or ask us a question via the Product Quality group on yammer.

contact the Tesco Academy for more information on the technical training and development courses available for you.

check the code of business conduct booklet which outlines minimum expectations for all colleagues, wherever they are based and whichever Tesco business they work for. It provides guidance on each key risk area that might arise in your role.

Product Rules34 35

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