Morrisons is to shorten its payment terms for its smaller suppliers to a maximum of 14 days.
The new policy, which will affect about 3,000 suppliers comes in on 1st April. All goods for resale suppliers, whose business is worth up to £100,000 annually with Morrisons, will be paid within 14 days of receipt of a valid electronic invoice.
Commercial director Darren Blackhurst 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.”
The retailer also plans to help small suppliers which 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.