My Europe Slam: Tim Minahan Chimes In

Politics aside, I respect Tim Minahan for his knowledge of the overall procurement and supply chain market. The man even knows his way around a wine list as well, which gives him extra points in my book. But more important, I think his follow-up and criticism to my earlier post on Spend Management and the Decline of Europe is fair on some levels.

Even though I agree with Tim in theory, I still think he is living a Bostonian, tech analyst dream. Heck, pushing out payment terms might not be a best practice as Aberdeen defines it, but it's a lot better than the current situation for the 80+% of companies which have not bothered to recently rethink the potential of the A/P process to cut procurement costs, especially as interest rates climb and the cost of capital goes up. Even after reading Tim's post, I believe that it is reasonable for organizations which are not willing to take the plunge and invest in EIPP and supplier financing solutions to extend and standardize payment terms (even though working with such vendors as Prime Revenue, Ariba, and Xign -- which can help optimize the order to cash cycle, helping procurement organizations take advantage of dynamic early payment discounts -- is a more optimal choice).

Jason Busch

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