Freeing Yourself From the Chains of the DPO Stretch – An Empirical and Experiential Analysis [PRO]

In a previous Spend Matters post titled Does Increased DPO Actually Destroy Enterprise Value?, I highlighted some analysis where, in 12 of 14 manufacturing industries I analyzed, I found negative correlations between days payable outstanding (DPO) and enterprise performance (e.g., debt you may incur to raise cash to invest in high payback initiatives such as B2B trade financing where early payment discounts and/or supply chain finance programs are established). In this Spend Matters PRO article, I’ll dive into the industry details and also provide some additional insights based on some recent research that we conducted with the Institute for Supply Management (ISM).

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