Morrisons to shorten payment terms for small suppliers

Date: 27/03/2017

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 with Morrisons, 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. Morrisons 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 is also announcing today, that to help small suppliers who currently don’t use an electronic invoicing system, it 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.
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, including:
- Reducing the type of supplier income from 37 to three
- Removing or reducing many charges that suppliers pay
- Resolving all cost price invoice queries within five working days
- Introducing a simpler standard Supply Agreement for adoption this year
Morrisons is currently:
- Developing longer term business plans for own-brand partners and strategic suppliers allowing for more effective collaboration
- Launching an independent whistleblowing service so suppliers may anonymously report concerns
ENDS
For further information please contact the Morrisons press office on 0845 611 5111.
Notes:
- Morrisons is writing to suppliers to inform them of the changes
- Morrisons’ suppliers can receive further information on our helpdesk number 0845 611 5700
- To benefit a supplier must:
  - be a goods for resale supplier;
  - have a turnover with Morrisons on goods for resale during Morrisons last financial year, of £100,000 or less excluding VAT;
  - submit valid electronic invoices through an EDI platform approved by Morrisons.

News Morrisons to shorten payment terms for small suppliers