 America's largest public companies, 'May have reached the limits of their ability to stretch payables terms with suppliers in mid-2022,' according to a research update from The Hackett Group. The Q2 2022 update to the Working Capital Survey suggests these companies, 'Fairly successfully navigated inventory management in the face of high levels of global uncertainty.'
The report goes on to highlight a fall in DPO of 1.1% (from 56.5 to 55.9 days) in Q2 2022, indicating a shift of leverage toward sellers. “This is the true definition of an inflection point, and a trend that is likely to continue,” said The Hackett Group Director Shawn Townsend. “Buyers have become more concerned with supply assurance, and have had to become less prescriptive about how they receive goods and services. In addition, while supply chain financing remains popular, buyers are more focused on using it to stabilize and reinforce the supply base than to extend payment terms.” The full report is available here Comments are closed.
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