ARLA FOODS LIMITED

Company number: 02143253

Reporting period:
1 July 2020 to 31 December 2020

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This report was filed on 27 January 2021

and approved by Simon Kin Man Ho

Payment statistics

Average time taken to pay invoices: 54 days

Invoices paid:

• within 30 days: 26%
• in 31 to 60 days: 47%
• in 61 days or more: 27%

Invoices due but not paid within agreed terms: 55%

Payment terms

Shortest standard payment periods

60 days

Longest standard payment period

Answer not provided

Standard payment terms

Arla Foods Ltd standard payment terms are 60 days. Due date is calculated by applying agreed terms to the latter of valid invoice presented or goods receipt date. All invoices are paid on our calculated due date. If an invoice falls due during a weekend or holiday, the payment transaction is executed on the following business day. The report contains results for our external suppliers. Please find our payment policy on https://www.arla.com/legal-information/payment-policy/

Were there any changes to the standard payment terms in the reporting period?

Answer not provided

Were suppliers notified or consulted about these changes before they were made?

N/A

Maximum contractual payment period agreed

135 days

We offer 135 days payment terms to our supply chain suppliers.

Any other information about payment terms

If we ignore the money transfer time (as GBP transfer takes 2 working days), the value of the payments on time increases to 74%, and additionally, if we ignore the weekends, it is almost 87%.

Dispute resolution process

In case of any disputes related to payment terms, supplier can contact P2P Department at: AP.UK@arlafoods.com or write to Arla Foods Ltd, 4 Savannah Way Leeds Valley Park, Leeds, LS10 1AB or call: 0 113 3827 202

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, this business has not signed up to a code of conduct or standards on payment practices.

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.

Yes

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