DHL says it is “working hard to resolve the issue” after it was removed from the government’s Prompt Payment Code for failing to pay suppliers on time.
The Chartered Institute of Credit Management, which administers the code on behalf of the government, said it had removed five companies for non-compliance and not providing 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.”
The code is intended to help end the culture of late payment, particularly for small businesses. This includes a commitment to pay 95 per cent of all supplier invoices within 60 days.
Twelve companies have been suspended for not paying their suppliers in line with the code but they have committed to make changes to become compliant. One company, 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.”