Coles supermarket improves payment system for suppliers

Coles will reduce the payment times for its suppliers from an average of 30 days to within 14 days from July, the supermarket recently reported.
The move comes ahead of a report from Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell set to reveal the payment times of the nation’s major corporations, due to be released in the coming weeks.
John Durkan, Managing Director, Coles said that payment times will be reduced for the more than 1,000 suppliers that provide the supermarket with up to $1 million in merchandise each year, specifically those issuing electronic invoices.
“We understand how important cash flow is for small suppliers and shortening payment times will help to make it easier for them to run their business,” he said.
Carnell has reported ahead of the release of the report that payment times have become worse over the past 12 months, and large multi-national companies are the worst offenders.
“In fact, some large companies have moved payment terms to as long as 120 days,” she added.
Carnell added that Coles’ decision will benefit hundreds of small businesses.
A spokesman for Coles told Inside Retail that the supermarket’s movement towards shorter payment times did not come about due to the ombudsman’s report, rather it was part of its ongoing work to improve its relations with suppliers.