RHA moves to protect its members following delayed trade payments

News Article - 27 July 2011
Category: Business

The Road Haulage Association (RHA) has been forced into action to protect its members with many complaining of delayed trade payments from significant aggregates customers.

Numerous RHA members are growing concerned that signed agreements with companies - many of which have supplied materials for hefty public sector projects for the Highways Agency in the past - are being taken advantage of.

Consequently the RHA has held initial talks with the Department of Transport and the Department of Business Innovation and Skills in a bid to encourage the Government to apply pressure to slow payers.

Jack Semple, RHA director of policy, said: "Hauliers are reporting what appears to be flagrant abuse by large customer companies of what is an unequal commercial relationship.

"We have seen companies take payment holidays at the expense of suppliers before, in order to strengthen their year-end balance sheet.

"This appears to be rife in the construction sector at present and we are asking the Government to make it crystal clear to the companies involved that such behaviour is unacceptable, particularly if they wish to continue involvement in public sector projects."

It is unknown as yet whether the RHA will prevail with its protestations. But the argument alone serves to highlight the issue that SMEs up and down the country often suffer from the purchase power of their larger clients.

Integrated haulage business systems enable organisations to control the procurement and management of suppliers, with the ability to retain control over budgets and sub-contractors. Operating in this fashion, any purchases they make with clients big or small are therefore budgeted for and approved well before reaching the purchase ledger.

Accurate vehicle costing, seamless handling of day-to-day client management and efficient load and journey planning are all essential to the profitability of a haulage business.

Article keywords: RHA, road haulage, trade payments

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