Aldi fast-tracking payment for over 200 of its Irish suppliers
Measure to pay within five days applies to all suppliers that transact up to €1m worth of business annually with Aldi
26 March 2020 | 0
Aldi has committed to reducing payment terms for its small and medium sized Irish suppliers in response to the Covid-19 crisis, ensuring suppliers get paid as quickly as possible.
The new terms which will see invoices processed immediately and payment within five days, will apply to all suppliers that transact up to €1 million worth of business annually and will positively impact over 200 Irish food and drink producers Aldi partners with.
Effective immediately, the new payment terms will remain in place throughout the Covid-19 crisis, underlining the partnership approach Aldi has developed with its Irish supply base.
“Over the last few weeks our suppliers have experienced unprecedented difficult circumstances,” said John Curtin, Aldi Ireland’s group buying director.
“Their teams have worked around the clock to provide the products to keep our shelves stocked for customers,” Curtin said, “and we want to help them in return.”
Curtin added that move will “greatly assist with their cashflow requirements, and in turn, help them pay their farmers and suppliers along the chain on time. This is a hugely difficult time for Irish business and the food sector and we need to keep supporting each other in any way we can.”
Aldi emphasised that this latest initiative follows previous moves to support its Irish supply chain. Since 2017, Aldi has had 14 day payment terms for its Irish suppliers who transact less than €300,00 per year. This was at a time when it took 62 days on average for small suppliers to receive payment across Ireland from other firms, according to Small Firms Association data from 2017.