Hermes Parcelnet pays its suppliers more quickly than any other company in the Motor Transport Top 100 top 10, an MT analysis has found.
In the six months to 31 August, Hermes Parcelnet – 10th in this year’s Top 100 by turnover – was first for prompt payment, taking on average just nine days to pay its suppliers with 93% paid within 30 days and only 8% of invoices not paid within agreed terms.
Second was DPDgroup UK – fifth in this year’s listing – that in the six months to 30 June took an average of 22 days to pay its suppliers. The parcels firm paid 68% of its suppliers within 30 days, with 36% of its invoices not paid within agreed terms.
FedEx UK was third – fourth place in the Top 100 – taking on average 25 days for supplier payments, with 76% of its invoices settled within 30 days in the six months to 31 May. At
FedEx UK 11% of invoices were not paid within the agreed terms.
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Fourth place was Menzies, listed eighth in this year’s MT Top 100. In the six months to 30 June the firm’s average supplier payment time was 29 days, with 65% of invoices paid within a month and 35% of invoices not paid within the agreed terms.
DHL Supply Chain – ranked second in the Top 100 – had an average supplier payment time of 38 days in the six months to 30 June, with 37% of its suppliers paid within 30 days, but 41% of invoices not paid within the agreed terms.
The rest of the top 10 comprised: Wincanton (sixth place, taking an average of 40 days to pay its suppliers with 17% of its invoices not paid within the terms); Kuehne + Nagel (seventh, with suppliers paid on average in 43 days and 22% of invoices not paid within the terms); XPO Supply Chain, the largest of the three companies that make up XPO Logistics in the UK (eighth, with suppliers paid on average within 44 days, 45% of invoices not paid within the terms); in ninth place is Royal Mail (46 days to pay and 21% of invoices not paid within agreed terms).UPS, listed seventh in the Top 100, has yet to report its payment practices.
Large companies have been legally required to publicly report their payment policies, practices and performance since April 2017 to protect smaller businesses from the effect of late payments.
