CP Foods speeding up payment for SME suppliers
Charoen Pokphand Foods (CP Foods) has announced it is cutting its deadline for paying suppliers to 30 days in an effort to boost their liquidity. The move covers 3,000-4,000 small and medium-sized enterprises (SMEs) and is aimed at helping them retain workers to stimulate economic recovery from the Covid-19 crisis.
Prasit Boondoungprasert, CEO of CP Foods, said the pandemic has caused unprecedented disruption in all business sectors, but especially SMEs, which are suffering cash-flow challenges.
In response, CP Foods and its sister brands CP, CP Freshmart and BK are shortening the payment period for suppliers to 30 days after reception of goods or services.
Prasit said the deadline already covered many CP Foods suppliers and would quickly be rolled out to cover all of them.
“This will enable their businesses to run smoother, protecting thousands of jobs across many related sectors as a consequence," he said.
CP Foods operates agro-industrial and food businesses with 3,000-4,000 SME partners, mainly supplying raw materials, ingredients, packaging and products for its global business.