What happens when working capital is tied up?
Small businesses become fragile, and, and in turn, the global economy could gradually slide back into a recession. In fact, according to The U.S. Small Business Administration, in the U.S. alone, there are 23 million small businesses that account for over 54% of domestic sales, provide 55% of all jobs, and 66% of all net new jobs since the 1970s.
Yet, even as in-roads have been made to build a healthier economy, it’s not uncommon for companies to extend payment terms and adversely put their suppliers’ financial health at risk.
How did this happen?
Typical success metrics, such as Days Payable Outstanding (DPO), as a standalone initiative have become antiquated. Though holding on to cash for as long as possible is typically viewed as a strategic treasury initiative, extending payment terms without offering early payment options to suppliers has been proven to have a negative impact on the supply chain; forcing suppliers to resort to expensive financing options.
You will leave with a new perspective on an antiquated metric- a perspective that will serve both your Treasury department and your supply chain well in today’s economic environment.
At Taulia Connect, our annual customer conference in San Francisco, we will discuss the transformation of procure-to-pay and what you need to know to stay ahead of the curve. With today’s accounts payable cloud solutions, small and large businesses can partner to make a stronger supply chain. The end result is a new perspective on an antiquated metric- a perspective that will serve both your organization and your supply chain well in today’s economic environment.
What should we do?
Technology solutions are removing the risks, improving AP efficiencies, and enabling the supplier and buyer to benefit through supplier financing – it’s a win-win solution. And with more cash flowing through the supply chain, we can all get back to what really matters: building our businesses; improving our trading relationships; and helping the global economy prosper.
At Taulia Connect, we will discuss how you can transform your financial supply chain from a cost center into a profit center, turning every invoice into a revenue generator, and staying ahead of the ever-changing global business environment. We will uncover the future of procure-to-pay and delve into how technology solutions can be leveraged to become transform organizations into best-in-class.