An analysis of accounts receivable activity among manufacturers, distributors/wholesalers, retailers, service companies and transportation providers for November indicates a much faster cash cycle than is normal for this time of year, says Cortera, a business information firm that publishes a monthly A/R report. The Cotera Supply Chain Index measures payment activities of approximately 350,000 businesses.
Faster payments and related cash flow throughout the overall supply chain typically occurs in the months following a holiday shopping season. That it is happening now supports reports of retailers and suppliers reducing inventories this holiday season with little expectation of replenishing goods once those inventories are exhausted, Cortera says.
The latest data represents the fifth time in the last six months that the Cortera SCI has revealed improving cash flow conditions throughout the supply chain, though the SCI remains 20 percent higher than pre-recession levels of two years ago.
"We've relied on Cortera for over a decade and they never stop innovating. In my mind they represent the industry's new thought leader."
"It is very gratifying when your VP of Finance comes out of his office to congratulate your team on their improved metrics. Our partnership with Cortera has really helped us to achieve these results."
