Derby train-maker Bombardier has said it has improved the way it pays suppliers following a report which found “poor” payment practices.
The firm has taken action following recommendations made by a report compiled by the Office of the Small Business Commissioner, an independent public body set up by the Government which investigates payment disputes between large companies and the small businesses who supply them.
In February, the Commissioner published its findings, uncovering internal inefficiencies at Bombardier, which it said had resulted in “poor payment practice to their small business supply chain”.
Following the publishing of the report, the company, which has its train-making site in Litchurch Lane, has reviewed its payment practices and provided evidence to the Commissioner of the procedural changes it has made to tackle late payments in its small business supply chain.
According to the Commissioner, the company has been using recommendations in the report as a tool to ensure enhanced communication of, and compliance, with its existing processes.
Interim Small Business Commissioner Philip King said: "It’s great to see businesses taking on board the recommendations we made and their willingness to work with us to improve payment practices for the benefit of smaller organisations in the supply chain.
“At this time of national crisis, it is imperative for large businesses to act responsibly and ensure obligations towards suppliers are fulfilled.
“Small businesses are vital to the UK economy and the SBC is committed to driving a culture change and ending unfavourable payment practices."
Will Tanner, director of communication at Bombardier Transportation UK, said: “The report by the Small Business Commissioner has been a useful tool to help us review our payment practices, particularly with regard to small and medium enterprises.
“We have taken action across the UK business to ensure we continue to comply with our existing practices and that these are communicated effectively.”
