Supplier payment code turns two
03 June 2019
Ruby and Roy’s say the Business Council’s supplier payment code and their relationship with Qantas has helped them employ extra people, invest more and help feed the growing demand for their world class products on flights across the nation.
When bigger businesses pay their invoices on time, it gives Ruby and Roy’s the certainty they need to expand and support other smaller businesses down the chain – particularly in Western Sydney where they are based.
“We have really grown with Qantas since we started supplying them in 2011,” said Karen Neil, who started the company with her husband Simon in 2005 and now employ 30 people.
“Being paid on time means we have been able to gear up for things, to be sure-footed, which means we have been able to expand, employ more people and invest in better equipment.”
The Business Council’s supplier payment code, which has just turned two, has 107 signatories. That includes retailers like Coles, Woolworths, resources companies like BHP and Rio Tinto, and food and beverage manufacturers like Coca-Cola Amatil and Lion.
They are not just our largest employers, but with a collective revenue of $580 billion, they also have some of the most extensive supply chains. That means benefits flow through the economy.
Business Council chief executive Jennifer Westacott said the code’s two-year anniversary served as a call to action for companies that haven’t signed up.
“The code is making a real difference for small business across Australia, supporting their ability to expand and create new jobs. In the past two years, the code has grown to cover supply chains that include thousands of small businesses across the country,” she said.
“We launched the code in 2017 because we know that businesses of all sizes depend on each other to thrive, employ more people and help keep communities strong. We heard community concerns about small business payment times, and we are acting to make sure they get a fair go.”
By signing the code, signatories commit to paying eligible small business suppliers within 30 days of receiving a correct invoice. That relationship between big and small business is worth half a trillion dollars and underpins the jobs of 11 million of Australia’s 13 million workers.
“When businesses invest and innovate, they grow, create jobs and pay higher wages,” Ms Westacott said.