Executive Briefings

Supply Chain Cash Flow Slows

Cash flowed more slowly through supply chains in January, reflecting longer payment periods among suppliers, transporters and customers in the first weeks of 2010, according to the latest Supply Chain Index released by Cortera.

The rate of payment in Cortera's January 2010 Supply Chain Index was 9.05 DBT, or days beyond term, a 9.95-percent increase over its December report. That's unusual, but not necessarily a bad thing, the business credit bureau explained, as it indicates a return to pre-recession payment trends.

"If history is a guide, we're about to see a steady, multi-month improvement in payments, cash flow and debt reduction throughout the supply chain," says Jim Swift, Cortera's president and CEO. "For stakeholders, quick, reliable payments remain the best way to fuel continued growth throughout the entire supply chain."

Cortera's monthly SCI is based on the accounts receivable activity of more than 350,000 businesses, including manufacturers, distributors and wholesalers, retailers and transportation companies.

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Cash flowed more slowly through supply chains in January, reflecting longer payment periods among suppliers, transporters and customers in the first weeks of 2010, according to the latest Supply Chain Index released by Cortera.

The rate of payment in Cortera's January 2010 Supply Chain Index was 9.05 DBT, or days beyond term, a 9.95-percent increase over its December report. That's unusual, but not necessarily a bad thing, the business credit bureau explained, as it indicates a return to pre-recession payment trends.

"If history is a guide, we're about to see a steady, multi-month improvement in payments, cash flow and debt reduction throughout the supply chain," says Jim Swift, Cortera's president and CEO. "For stakeholders, quick, reliable payments remain the best way to fuel continued growth throughout the entire supply chain."

Cortera's monthly SCI is based on the accounts receivable activity of more than 350,000 businesses, including manufacturers, distributors and wholesalers, retailers and transportation companies.

Read Full Article