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Tuesday, February 09, 2010

Supplier Relationship News

 

Posted: Tuesday, September 01, 2009, 12:48PM

Larger companies squeeze suppliers

The time it takes large companies to pay their suppliers is longer than it was last year while they receive payment quicker - the exact opposite of what smaller companies have experienced during the same time period.

Analysis carried out by REL Consultancy on behalf of The Wall Street Journal found that for companies with sales of more than $5bn the time it takes them to pay suppliers has increased to 55.8 days from 53.2 days in 2008, while for companies with sales of less than $500m it has decreased from 42.9 days in 2009 to 40.1 days in 2008.

In terms of being paid, larger companies now collect cash in 41 days, compared with 41.9 days last year - while smaller companies, on average, are paid 4.5 days slower than last year in 58.9 days.

The analysis is further evidence of how, as bank lending continues to struggle to meet demand, larger companies are using their weight to take cash out of the supply chain.

Procurement Tag - Supplier Relationship Management


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