A new report highlights payment issues among major logistics companies.
- Ceva Logistics, Reed Boardall, and others identified as repeat late payers.
- Samworth Brothers commended for significant improvement in payment times.
- Research shows a 20% rise in firms delaying payments beyond 80 days.
- Recent legislation aims to enforce 30-day payment terms in public contracts.
A recent report has brought to light the issue of late payments, particularly among prominent names in the transport and logistics sector. Companies like Ceva Logistics and Reed Boardall have been identified for their recurrent late payment of invoices. Samworth Brothers, however, received praise for its efforts to improve payment timeliness.
According to research conducted by Good Business Pays (GBP), the number of companies reporting average payment durations of over 80 days has increased by 20%. Ceva Logistics, classified as a ‘serially-late’ payer, reportedly takes an average of 83 days to pay its invoices, with 65% of these taking 61 days or longer. Similarly, Reed Boardall was reported to have an average payment time of 56 days, with more than three-quarters of invoices not paid within the agreed terms.
Jack Richards & Son has also been noted for its 52-day average payment term, with 25% of its invoices taking 61 days or longer to pay. Brake Brothers, sharing a similar average payment period of 52 days, has 51% of its invoices extending beyond 61 days, highlighting a sector-wide issue.
In contrast, Samworth Brothers has made a considerable turnaround, reducing its late payments from 67% to just 7%. Such a transformation demonstrates the potential for companies to enhance their cash flow management and vendor relationships significantly.
GBP’s findings also coincide with recent government initiatives enforcing stricter payment terms. Companies dealing with public sector contracts are now required to comply with 30-day payment terms, a change that will extend to all suppliers within these contracts by April.
The logistics sector must address these systemic payment delays to maintain robust supplier relations and ensure operational efficiency.
