Can you (or your delegate) answer most questions/statements with a strong 'yes'?

1. Do you have established metrics in place that link the cash conversion cycle to management compensation across all areas of the company? 

2. Has your company's payment terms policy been updated in the past two years in response to changes in global interest rates? 

3. Are minimum payment terms of 60 or 90 days implemented for procurement contracts and are they regularly monitored through automated tracking systems?

4. Are standard payment terms implemented consistently across all business units? 

5. Is there a process in place to measure the discrepancy between contractual payment terms and actual payments made by the accounts payable department?

6. Are clear guidelines for payment terms with suppliers available on the company website? 

7. Are buyers trained to handle payment terms and view them as a standard component of supplier contracts? 

8. Is there alignment between procurement and accounts payable teams regarding the input of payment term fields in ERP systems? 

9. Do you offer a supplier financing program?

If you answered ‘yes’ to most questions, great!

You created a robust DPO setup in your firm.

If you answered ‘no’ or are unsure about it, you might have a gap - an excellent opportunity to improve your cash flow and working capital.

Feel free to get in contact for an exploratory dialogue with helmig advisory AG to assess the art of the possible.