Tuesday 12th September, 2017
German supermarket chain, Aldi has shortened its payment terms for small suppliers from 33 to 14 days for annual transactions of up to £250,000.
The discounter said the move which started this week, and applies to suppliers of fresh produce and some other products, was one of several initiatives to support its supply base.
Reported in the Fresh Produce Journal, Aldi’s managing director of buying, Tony Baines, said: “We recognise that cost pressures across the supply chain are increasing and place a strain on smaller businesses in particular. Reducing payment terms to our smaller suppliers should help ease some of this pressure.”
The retailer’s approach to supplier relations was recently recognised as the best in the supermarket sector by the Groceries Code Adjudicator (GCA), with Aldi topping the GCA’s annual Groceries Supply Code of Practice (GSCOP) supplier survey for the fourth consecutive year.
Aldi opened its 700th store earlier this year and plans to open more stores in the UK over the next five years.