Monday 12th June, 2017
Asda is planning to reduce payment terms for small suppliers to fourteen days as part of its on-going efforts to work more effectively with its supply base.
The move will benefit around 1200 small suppliers with up to £250,000 business with Asda. The first group of around 430 suppliers will move to the new terms on 1st June 2017.
Asda has a number of other mechanisms in place to support its supply base, including simplifying its Terms and Conditions and providing access to early payment finance options.
The supermarket owned by Walmart, also runs a ‘Sustain and Save’ programme that works with businesses to become more efficient and reduce their operating costs and recently launched a unique ‘app’ that allows its suppliers to share and swap excess products with other companies who may be able to make use of them. This programme has recently been rolled out to the regions to lend further support to local suppliers.
A spokesperson for Asda said; “Our relationship with our suppliers is vital to ensuring we can do the best job for our customers and we continue to focus on building strong partnerships with them, many of whom have been with us for decades. We’re always looking at ways we can work more effectively together and we believe it is the right thing to do to reduce our payment terms to fourteen days for our smaller suppliers.”