GOV.UK
JOHNSON MATTHEY PLC
Company number: 00033774
Reporting period:
1 October 2018
to 31 March 2019
This report was filed on 30 April 2019
and approved by Anna Manz
Payment statistics
Average time taken to pay invoices: 56 days
Invoices paid:
- within 30 days: 32%
- in 31 to 60 days: 46%
- in 61 days or more: 22%
Invoices due but not paid within agreed terms: 54 %
Payment terms
Shortest standard payment period
1 days
Longest standard payment period
90 days
Standard payment terms
At this time, we do not have standard payment terms consistently applied across our business. There is a wide range of payment terms offered by, and negotiated with, our suppliers. Our payment hubs, hosted on multiple legacy systems, operate either weekly or fortnightly payment runs.
Were there any changes to the standard payment terms in the reporting period?
No
Maximum contractual payment period agreed
90 days
N/A
Any other information about payment terms
The date of receipt of supplier invoices is not recorded. Reported statistics are calculated from the date of invoice. Supplier receipts of payment dates are unknown. For reporting purposes, receipts of payment dates are estimates.
Within our procurement programme, our intention is to introduce best practices and optimise to a suite of standard payment terms across the business in 2019. This will be supported by the further roll-out of our new ERP system which will make our payment processes more efficient and effective. Through our Johnson Matthey Values of ‘Doing The Right Thing’, our intention is to work with our partners to make available competitive supplier financing product support to those suppliers who would benefit from and choose them and, additionally, to have a complementary suite of standard payment terms suitable for small and medium-sized enterprises.
As we prepare to implement our new finance system, we are resolving a number of long-disputed invoices, which impact our average payment times.
Dispute resolution process
Payment disputes are typically initially referred to the finance function, who will try to resolve them by agreement through discussion with the supplier. If resolution cannot be reached within a reasonable period, the matter will typically be escalated to the procurement function, who will try to reach resolution by agreement through further discussion with the supplier. As necessary, appropriate further dispute resolution mechanisms provided for in the contract will be used (i.e. reference to mediation, arbitration or litigation).
Other payment information
Has this business signed up to a code of conduct or standards on payment practices? If so, which?
For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.No
Does this business offer e-invoicing in relation to qualifying contracts? This is where suppliers can electronically submit and track invoices. It’s not just allowing suppliers to email them an invoice.
No
Does this business offer supply chain finance? This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
No
Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No