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 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.
John Curtin, Aldi Ireland’s Group Buying Director said:
“Over the last few weeks our suppliers have experienced unprecedented difficult circumstances. Their teams have worked around the clock to provide the products to keep our shelves stocked for customers, and we want to help them in return. Our new shorter payment terms mean over 200 Aldi suppliers will have their invoices processed immediately and payment within 5 working days. This 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.”
This is the latest initiative that Aldi has in place 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 (Small Firms Association data 2017).
Aldi is committed to growing its Irish supply base and increasing the number of Irish products available in its stores. It has invested more than €1,500,000 in its Grow with Aldi supplier development programme since 2018, which offers up-and-coming artisan Irish food and drink producers the chance to have their products listed in Aldi’s 142 stores. Aldi will sell over €750 million worth of Irish goods this year, sourced from Irish producers, manufacturers and suppliers across the country.
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