- 3 May 2019
- Transport / Logistics Services
DHL has been removed from the UK government’s Prompt Payment Code thanks to failing to pay its suppliers on time. The company says it is “working hard to resolve the issue”
Five companies were removed from the Code by the Chartered Institute of Credit Management, that administers the code on behalf of the government. The companies in question didn’t provide a plan for how they will meet the terms of the code. The other four are GKN, R Twining & Co, BHP Billiton, and John Sisk & Son.
A DHL spokesperson said: “We are working hard to resolve the issue as soon as possible.”
Late payment blights small business accounting, and the Code was set up to help suppliers in this situation. To qualify, members must commit to paying 95% of all supplier invoices within 60 days.
A further 12 companies have been suspended for not paying on time but supplied the government with plans to make changes to become compliant. Another, the Go-Ahead Group has been reinstated.
Kelly Tolhurst, minister for small business, said: “The Prompt Payment Code is a positive force for good and by naming transgressors we are supporting small businesses in the supply chain.
“We remain committed to supporting small businesses against poor payment practice and are delighted to see that the Prompt Payment Code Compliance Board has acted to expose those whose payment practices fall outside of their obligations to treat suppliers fairly.”