Kroger’s 90-day terms have CPG suppliers seeing red

Is there much vendors can do about restrictive payment policies from large chains? Do you see the benefits from such lengthy terms outweighing the risks for Kroger?

Interactive Edge’s CEO, Zel Bianco comments:
This is indeed a slippery slope. Retailers beat up manufacturers, manufacturers beat up suppliers of ingredients as well as solution providers like us. It is not unusual at all now for manufacturers to demand 90-day terms but actually pay at 120 days or beyond! This, so they can have better cash flow to re-invest in their business. How does this help the industry overall? What choice do we or the suppliers have to meet the customer demands?

Read the entire article from RetailWire:

Kroger’s 90-day terms have CPG suppliers seeing red