Morrisons has announced changes to its payments terms for small resale suppliers, along with the launch of a free supplier portal, in a bid to simplify buy and sell procedures.
From 1st April, around 3,000 resale suppliers, whose business with the supermarket chain is worth up to £100,000 annually, will be paid within 14 days of receipt of a valid electronic invoice, with suppliers already on these terms remaining unaffected.
Morrisons has also announced it is developing a free-to-use supplier portal for small suppliers who do not currently use an electronic invoicing system, due to be launched later this year.
Morrisons Group commercial director Darren Blackhurst noted: “We aim to buy and sell simply and when we listened to our small suppliers, they told us that these payment terms would help them with their cash flow. We want our smallest suppliers to grow with us.”
In addition, Morrisons is launching a simpler standard Supply Agreement this year, while reducing the type of supplier income from 37 to three, removing or reducing many of the charges that suppliers pay, as well as resolving all cost price invoice queries within five working days.
The announcement came amid an array of changes that the retailer is currently implementing, including longer term business plans for own-brand partners, as well as the launch of an independent whistleblowing service that suppliers may use to report concerns anonymously.
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
