British newspaper, The Daily Telegraph, uncovered that GSK has begun extending its payment terms from 60 days at the end of last year to 90 days, a move which Phil Orford, chief executive of the Forum of Private Business said shows ’scant regard’ for small suppliers.
One GSK supplier who spoke to The Daily Telegraph anonymously said: “This kind of borrowing from suppliers – whatever their size – is scandalous.”
The Forum of Private Business has entered GSK into its ’hall of shame’ of big businesses who pay suppliers late or slowly and includes the likes of technology giant Dell, brewer Molson Coors and supermarket chain Sainsbury’s.
In response, a GSK spokesman told The Daily Telegraph; “We greatly value the relationships with have with our many suppliers and understand the pressures on cashflow and financing being faced by smaller companies at this time. This is why, for smaller companies, we have a number of schemes in place to help them, including alternative payment schedules and offering supply chain finance.”
The company added that its move had been ’consistent’ with the practices of some of the worlds other largest businesses but would now be paying suppliers “within the first five calendar days of the month following the expiry of sixty calendar days from the date of receipt of the relevant invoice by GSK”.
