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From 11 September, suppliers that conduct up to €300,000 worth of business annually with Aldi will operate under reduced payment terms of 14 days.
The move will see such suppliers paid within 14 days. Previously, terms were varied, with the ceiling for payment being 48 days.
More than 100 businesses will immediately benefit from this change, according to Aldi.
Other initiatives Aldi has in place to support its supply base 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.
Cost pressures
Finbar McCarthy, group buying director 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.”
Aldi has been the fastest-growing supermarket in Ireland for most of the last 10 years. In the last five years, Aldi has recruited over 70 new Irish suppliers, meaning it now partners with more than 175 Irish producers.
McCarthy added: “Our relationships with suppliers are based on longevity, sustainability and trust.
“We have worked with many of our current suppliers since we entered the Irish market almost 20 years ago, and are always looking for ways in which we can work more effectively with them.”
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