DPO Extension Causes Economic Ripple Effect

 

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In the summer of 2015, APQC launched a survey to examine the growing financial pressure on suppliers resulting from customers forcing longer payment terms, which is tracked by finance managers with the metric known as days payable outstanding (DPO). The upshot: many suppliers, especially mid-sized and small businesses, are experiencing cash flow difficulties that threaten to impact their ability to expand, hire more workers, and, in some instances, stay afloat. APQC also examined suppliers' opinions about how this situation may ultimately impede U.S. economic growth.

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