UK retailer, Morrisons, is to shorten its payment terms for its smaller suppliers to a maximum of 14 days.
From 1st April 2017, all 'goods for resale' suppliers, whose business with Morrisons is worth up to £100,000 annually, will be paid within 14 days of receipt of a valid electronic invoice.
As a result, more than 3,000 suppliers will be on payment terms of less than 14 days.
In addition, to help small suppliers who currently don’t use an electronic invoicing system, Morrisons is 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.
“We want our smallest suppliers to grow with us”, said Morrisons Group commercial director, Darren Blackhurst.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Gavin Ryan. Click subscribe to sign up to ESM: The European Supermarket Magazine