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B&Q takes the lead with supplier payments

B&Q New Store Front

It's not very often that here at Insight DIY, we have the opportunity to report on a retailer taking a positive and responsible stance when it comes to supplier relationships and particularly the thorny area of payment terms.

Too often, we are compelled to expose the opposite type of activity by numerous retailers, such as Homebase in our story entitled 'Homebase puts pressure on suppliers' from January 2014 and similar stories relating to Topps Tiles, Debenhams and Argos.

However, we are delighted to report that B&Q have this week taken a very positive step by writing to many of their suppliers advising them of 'New principles governing their supplier relationships and shorter terms for small UK businesses'.

The set of principles that are clearly laid out in the letter from their finance department, include the implementation of 30 day maximum payment terms for their UK based, small business suppliers. This unparalleled approach applies to all companies who supply Kingfisher, B&Q or Screwfix with turnover of less than £1m per company. If the company supplies more than one Kingfisher business, the limit is £1m per company, not an aggregate of £1m.

Their other commitments include the payment in full and on time of 100% of all undisputed invoices and their intention (in line with new UK legislation) to publicly report on their payment practises.

Following the recent exposure of Tesco by the Grocery Code Adjudicator (GCA) for knowingly delaying payments to their suppliers, it's both refreshing and encouraging to see a retailer being proactive in this area.

Let's hope the other retailers in our industry choose to follow suit, after all, their stores would all be rather empty without the support of the suppliers.

Source: Insight DIY Team

26 February 2016

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