Post-Pandemic Customer Terms Pushback and the Credit Team’s Alternatives

As we emerge from the pandemic, credit teams are experiencing more customers disregard supplier-set terms and unilaterally extending these terms with a terms pushback strategy (TPS). While TPS has allowed the customer to preserve working capital, improve cash flow and grow inventory during the pandemic, the supplier's DSO and profit margin has suffered during this period.

In this webcast Scott Blakeley will discuss:

TPS and Trade Credit during and Post Pandemic

• Trade credit preserving companies during the pandemic
• Large companies unaffected by the pandemic are sitting on record cash holdings but increasing the days to pay supplier
• Customers stretching supplier terms to preserve cash and fill working capital gaps
• Customers extending payables has become a best practice

Added Reasons for TPS

• Customer benchmarking, customer mergers, international influence and positive TPS press
• Key TPS Metrics Cash conversion cycle, days payables outstanding, days sales outstanding, and days inventory outstanding

Supplier Strategy for Dealing with TPS

• Including cannot single out terms, Robinson-Patman, two price lists, contract controls, loan covenants, credit insurance, early-pay discount, annual volume rebate

·Supply-Chain Finance and Dynamic Discount Options

Blakeley LLC will host a webcast of this topic on Tuesday, June 29, 2021 at 11:00 AM pdt/ 2:00 PM edt for 45 minutes. During the webcast, you may post questions, which they will be responded to in real time.