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INTERNATIONAL PROCUREMENT AND LOGISTICS LIMITED

Company number: 05104448

Reporting period:
27 June 2020 to 25 December 2020


This information is as reported by the business, and responses are in their own words.

This report was filed on 22 January 2021

and approved by Paul Grover

Payment statistics

Average time taken to pay invoices: 35 days

Invoices paid:

  • within 30 days: 45%
  • in 31 to 60 days: 49%
  • in 61 days or more: 6%

Invoices due but not paid within agreed terms: 8%

Payment terms

Shortest standard payment periods

30 days

Longest standard payment period

71 days

Standard payment terms

International Procurement and Logistics Limited ('IPL')’s standard contractual payment terms state that IPL will pay each correct invoice on its next weekly payment run following 30 days after the later of receipt of goods and receipt of invoice (for goods for resale suppliers), on its next weekly payment run following 60 days after receipt of invoice (for goods not for resale suppliers) or 30 days (cash in bank) after receipt of invoice for small suppliers. In certain specific circumstances, IPL may agree to shorter and longer payment terms with its suppliers as part of an overall commercial agreement.

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

During the reporting period IPL changed its standard payment terms for all goods for resale suppliers (other than produce) to the next weekly payment run following 30 days after the later of receipt of goods and receipt of invoice (rather than 30 days after date of invoice). These standard payment terms already applied to IPL’s produce goods for resale suppliers following an amendment to their standard payment terms in the first reporting period of 2020. A minor change has also been made to IPL's standard payment terms for goods not for resale suppliers to provide that the payment terms run from the date of receipt of invoice (rather than the date of invoice). Suppliers were not notified of these changes as they remain on their current terms until their contracts expire.

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

N/A

Maximum contractual payment period agreed

71 days

No further comment provided

Any other information about payment terms

Within IPL’s standard contractual terms, IPL may set off monies payable to a supplier against any monies owed to IPL by the same supplier. Although no changes have been made to the relevant suppliers’ contractual payment terms, during the COVID-19 crisis IPL has invested in supporting its small suppliers by paying them on IPL’s next weekly payment run following the relevant invoice being cleared. IPL has also supported individual suppliers to accelerate payment of invoices to facilitate continuity of supply.

Dispute resolution process

If an IPL supplier raises a query in respect of an outstanding invoice, payment or deduction, in the first instance it is handled by the Accounts Payable team through a clear query process. If necessary the Accounts Payable team will refer to other business areas within IPL to resolve the enquiry. If the matter remains unresolved within the target turnaround time it is escalated to senior leadership.

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.

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