Asda reduces payment terms to 14 days for small suppliers
The Asda supermarket chain is reducing its payment terms for small suppliers to fourteen days.
The move will benefit around 1200 small suppliers with up to £250,000 business with Asda. The first group of around 430 suppliers moved to the new terms on 1 June.
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.”
Asda said it has a number of mechanisms in place to support its supply base, including simplifying its terms and conditions and providing access to early payment finance options. It also runs a ‘Sustain and Save’ programme that aims to help businesses to become more efficient and reduce their operating costs. In addition, it has recently launched an app that allows suppliers to share and swap excess products.
