Aldi shortens payment terms for small suppliers
Aldi has increased its support for small suppliers by reducing its payment terms to 14 days.
Print1 September 2017
Aldi has offered a gesture of support for its small suppliers, by reducing its payment terms to 14 days. The new terms apply to all suppliers that transact up to €300k worth of business annually with Aldi, and are effective from 11 September. More than 100 businesses will immediately benefit from this change.
The move is one of many initiatives that Aldi has in place to support its supply base. These include ensuring suppliers do not make any financial commitments without prior assurances on cost and volumes, keeping buying patterns stable throughout the year, and not running ‘buy one get one free’ or multi-buy promotions.
“We recognise that cost pressures across the supply chain are increasing and placing a strain on smaller businesses in particular,” says Finbar McCarthy, group buying director for Aldi. “Reducing payment terms to our smaller suppliers should help ease some of this pressure.”
In the last five years, Aldi has recruited over 70 new Irish suppliers, meaning it now partners with more than 175 Irish producers. It opened its 129th store In Ireland earlier this year in Ennistymon, Co Clare.
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