Depending on the industry, up to 5% of the total procurement costs is made up of financing and hence depicts not only a significant optimization potential but has also a crucial impact on maintaining liquidity. Even though at first sight the average collection-time is not a sole procurement responsibility, the influence that procurement has on stock rotation and payment terms to suppliers justifies its assignment. 

Cuppers Consulting defines for its clients the necessary KPI’s to control the financing costs and connect the targets for procurement, stock management and sales-force to those indicators and obtain an integrated view on the procurement financing costs.

Based on the defined indicators we implement the necessary measures to increase stock rotation, reduce cash-in terms, prolong payment terms to suppliers, reduce the cost of sale and decrease the average collection time to the minimum, never loosing out of sight supply security.