There is a cash flow disconnect that exists between organisations, of different sizes, across different industries and in different locations. This is often driven by differing needs within the supply chain.
As a supplier you want certainty that payment will be made to the terms agreed with your customer, or even before. As a buyer you will want to issue payment terms for the goods and services you consume that match the cash benefit to you, or you will leave a gap in your working capital that needs to be funded.
There are many ways to improve supplier relationships and health, such as structuring and streamlining processes, introducing standards and benchmarks, having clear lines of communication, and generally making yourself “easy to do business with.” However, in the current environment this isn’t always the case…but it should be.
