Waitrose has shifted its payment terms for all UK small food producers to a maximum of seven days – but confirmed to FEJ that the move has not been extended to suppliers of catering equipment and consumables.
The step, which will be phased in over the next two months, follows an internal review of payment terms for smaller suppliers and will mean that the supermarket now offers industry leading terms.
The supermarket has pledged to pay all its small scale suppliers, whose business with the retailer is worth less than £100,000 annually, within seven days of receipt of a valid electronic invoice.
More than 600 UK food producers will benefit from the change.
Mark Williamson, commercial director at Waitrose, said the move would help suppliers with cash flow. ““The internal review of how we pay our smallest suppliers was initiated because we wanted to make our good relationships with small suppliers even better by simplifying the payment process.”
A spokesperson for Waitrose said the new payment terms apply “specifically to food and drink suppliers”.