• Posted on: January 28, 2013 by: CashPerform

    With suppliers struggling to maintain their credit rating and that struggle likely to increase because of Basel III/ SEPA/EMIR and Solvency II then the supplier is likely to ask for financial assistance from its customers, particularly if they are corporates. However innovation within these suppliers is likely to be strangled as R & D budgets are reduced and the corporate ‘provider’ reduces not just cash amounts to be paid but determines what products and even services a supplier could provide. Apple has recently been superseded by Samsung as No1 smartphone provider. Did this have anything to do with Apples strategic approach to ‘buying forward production’ – up to one year?

    Governance within Working Capital – two types -Guardrails rules and subjective analysis

    Agreeing to pay suppliers the agreed amount on the agreed date. If contractually agreed then this can be regarded as rule based governance.

    Ensuring internal systems are able to value stock correctly and timely. As this is an internal aspect regarding a measurable amount of material then this could be regarded as rule based governance. However (more…)