ACHIEVE $55MM-$192MM

Potential Cash Opportunity via DPO extension

based on a $1B Spend

PRGX WORKING CAPITAL IMPROVEMENT – DPO OPTIMIZATION

We help companies improve their working capital – primarily by optimizing payment terms and analyzing payment processes.

PRGX’s fact-based approach combines the client’s data with our deep industry benchmarking and analytical capabilities to provide visibility into current payment terms across suppliers, categories and business units, along with consensus target terms.

SPEND ANALYTICS SERVICES

PRGX DPO OPTIMIZATION – HOW IT WORKS

PRGX utilizes three main levers to optimize your DPO.

PROCESS CHANGES

Eliminate early payments to suppliers

Re-engineer/re-visit one-off Processes

Reduce manual processes and minimize weak control areas

Optimize processes impacting payables

POLICY CHANGES

Adjust usage of early payment discounts

Reduce payment frequency

After payment run cut-offs, weekend & holiday policies

Align definition of payment due date to industry standards

TERMS OPTIMIZATION

Challenge vendors to meet best terms by category

Challenge vendors to meet best terms across purchaser regions

Challenge vendors to meet best terms across vendor business units

Institute people, process, systems to maintain & extend gains

Value achieved through:

Initial payments performance assessment of actual DPO vs. terms, identification and review of related processes and policies, process/policy improvement

Value achieved through:

Terms assessment and benchmarking by category, and terms extension

PRGX DPO OPTIMIZATION – CASE STUDIES

RETAIL CASE STUDY

GROCERY CASE STUDY

FINANCIAL SERVICES CASE STUDY

PRGX DPO OPTIMIZATION - RESULTS

Potential Cash Opportunity via DPO extension:

 

$55MM-$192MM

Our analysis helps build consensus among internal stakeholders around a workable, achievable plan.

In fact, by improving net days of working capital by five days, a company with $10 billion in annual spend can produce a one-time cash benefit of over $130 million, as well as large recurring savings.

Let’s Start a Conversation!

I’d love to have a conversation with you to help us better understand how we can help you and answer any questions you may have.” 

Meena PatelMeena Patel

Vice President, Retail & Consumer Goods Analytics & Advisory Services

Contact Us:

phone

1.999.999.9999

PRGX by the Numbers:

YEARS LEADING THE INDUSTRY

EMPLOYEES

COUNTRIES

PERCENT OF THE TOP 20 GLOBAL RETAILERS