Aldi shortens small supplier payment times
The new terms apply to all suppliers that transact up to £250,000 worth of business with Aldi and are effective from 11 September. More than 400 businesses are expected to benefit from this change.
Tony Baines, managing director of buying at Aldi, said: "We recognise that cost pressures across the supply chain are increasing and placing a strain on smaller businesses in particular. Reducing payment terms to our smaller suppliers should help ease some of this pressure.
"Our relationships with suppliers are based on longevity and trust. We have worked with many of our current suppliers since we entered the UK market more than a quarter of a century ago, and are always looking for ways in which we can work more effectively with them."
This move is in addition to other initiatives 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.
Aldi's approach to supplier relations was recently recognised by the Groceries Code Adjudicator (GCA), with the retailer topping the GCA's annual GSCOP supplier survey for the fourth consecutive year.
