Original article by Jared Lynch, Nick Evans
The Australian – Page: 15 & 18 : 28-Jan-20
Rio Tinto has stressed that it is committed to 30-day payment terms for its suppliers, following reports that it is offering to pay invoices before the due date in exchange for a discount of up to two per cent. The so-called ‘dynamic discounting’ scheme is generating significant cost savings for Rio Tinto, but it has attracted criticism from Small Business Ombudsman Kate Carnell and Western Australian Premier Mark McGowan. Rio Tinto is also said to be using big data and artificial intelligence technology to determine how much of a discount a supplier is prepared to accept.
RIO TINTO LIMITED – ASX RIO, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET