Most companies have suppliers. Yes, you’re their customer. And they should go out of their way to treat you well.
Tag Archives: vendor relationships
In One Small Step Can Change Your Life: The Kaizen Way, author Robert Maurer told the story of an employee who saw his metal shop coworkers throwing out scrap metal. When the company posted a suggestion box with a simple question, the worker submitted one to sell the scraps. The company implemented the idea and found an easy way to get more cash.
Business-to-business companies typically give clients 30 days to pay for their products or services. These B2B companies also need to pay their vendors within the same timeframe. And it’s standard business practice to wait until the end of the 30 days before making a payment.
It’s like having an interest-free loan for 30 days as you keep cash longer in your bank account. However, late payments can cause the company’s cash flow to snowball out of control jeopardizing other areas of the business and its relationships with vendors. (There’s a difference between being nice by paying quickly and having the needed cash flow to stay in business.)