Supply chain Fred Heritage · 12 July 2016
Waitrose promise to small suppliers Well pay you within a week?
Waitrose has pledged to pay its small food producers and suppliers within a maximum of seven days, the company has revealed. In a bid to hand back greater financial stability? to the small businesses it rellies on, the popular supermarket chain has announced it will introduce new payment terms over the next two months. All suppliers with an annual turnover of less than 100, 000 will receive payment within a week of providing an electronic invoice. Waitrose stocks more than 2, 500 regionally and locally sourced products, so the company expects that more than 600 small suppliers will benefit from its promise. Waitrose commercial director Mark Williamson said in a statement that the supermarket chain remained passionate about nurturing home-grown food producers. He added: This step will help give smaller-scale businesses, including new startups, more financial stability by helping with cashflow. these payment terms will make our good relationships with small suppliers even better. It is hoped that by taking a more ethical stance towards small suppliers, Waitrose bosses will be able to attract more custom from an increasingly ethically-minded UK consumer base. The firm also aims to improve staff retention levels, in the belief that employees prefer working for a socially responsible business. Commenting on the announcement, head of retail at accountancy practice Menzies told British Baker magazine that other supermarket chains would make similar changes.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.