Tuesday 28th March, 2017
Morrisons is to shorten its payment terms for its smaller suppliers to a maximum of 14 days from 1st April 2017, as part of wider moves to simplify its buying and selling operations.
More than 3,000 suppliers who have contracts with Morrisons worth up to £100,000 annually will be paid within 14 days of receipt of an electronic invoice. The supermarket is also aiming to find 200 local suppliers as part of its ‘Nation’s Local Foodmakers’ programme and they could benefit from the change.
In addition, Morrisons aims to help small suppliers who currently don’t use an electronic invoicing system by developing a free-to-use supplier portal, through which invoices can be raised and submitted. The new service is expected to be introduced later this year.
Darren Blackhurst, Morrisons Group Commercial Director, said: “We aim to buy and sell simply and when we listened to our smaller suppliers, they told us that these payment terms would help them with their cash flow. We want our smallest suppliers to grow with us.”
Suppliers who are already on payment terms that are less than 14 days, including livestock farmers, will remain on the same terms.
The moves aim to build on Morrisons’ ambition to buy and sell simply and follows on from other changes that have been introduced, such as, resolving all cost price invoice queries within five working days.