Tuesday, February 09, 2010
Supplier Relationship News
RELATED NEWS
- Wal-Mart signs $2bn sourcing agreement
28 Jan 10 - Toyota demands price cuts from supply chain partners
23 Dec 09 - Analysis: Procurement could pay the price for lack of SRM
17 Dec 09 - State Auditor General slams no-bid contracts
03 Dec 09 - UK firms start paying suppliers more quickly
26 Nov 09 - Continued cost cutting threatens supply chain
18 Nov 09
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KNOWLEDGE MANAGEMENT TAGS
"Supplier Relationship Management"
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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