Waitrose has launched an internal assessment of supplier relations and payment times after a report by The Times suggesting the company takes up to 45 days to pay small suppliers.
The newspaper reported that the retailer takes three times as long as Tesco to pay bills, quoting one anonymous supplier.
“I used to be on 60 days with Tesco, but now I am on 14 days . . . I am on 45 days with Waitrose and it nearly kills me sometimes,' the producer told the paper.
A spokesperson for Waitrose told FPJ that there are no claims that Waitrose is late in supplier payments, and said it has very good relationships with its network of small suppliers. Current payment terms vary significantly according to the product, the company said.
Waitrose said it instigated its own interrnal review, expected to take between two and three months, to look at how to make it easier for small suppliers. As well as assessing payment times, the review will also look at how suppliers can more easily invoice Waitrose, the spokesperson said.
MatthewFrost, director of commercial operations,said Waitrose customers love the “distinctiveness that small producers bring” and said the company has a long track record of supporting and nurturing smaller suppliers.
“Some of these local producers have since become bigger businesses operating at a national level. We work collaboratively with our suppliers and always look at ways we can build on this,” he said.
Waitrose said it now has more than 600 suppliers throughout the UK and Channel Islands, a figure which has risen by 25 per cent in the last three years. The company is seeing 10 per cent growth year-on-year in local and regional lines.
The news comes as Tesco, which is under investigation for breaches of the Groceries Supply Code of Practice (GSCoP),said it will reduce payment times to suppliers.
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