Payment Terms are fast becoming a key negotiation tool as organisations actively seek extended payment terms with suppliers, and on occasion make late payments without permission.
Yet how many suppliers will currently be in a position to either offer extended payment terms or that can bear the problems of continuous late payments? And how many will remain if this trend continues? More and more small-medium size suppliers are going out of business, causing supply chain problems.
How about turning the whole situation on its head and rather than trying to negotiate extended payment terms, why not request discounts for prompt payment instead? This can easily be included as part of an eAuction event.
We have guided many customers through this process in a series of forward and reverse auctions. Whilst goods and services can be placed through a reverse auction, early payment terms can simultaneously be offered in a forward auction. Benefits are clear for both parties and after all, didn’t the early bird always catch the worm?
