| Planning Contracting Administration Logistics Management Development Implementation |
Exploit Payment Discounts
| Traditional | Best Practice |
| Payment terms negotiated as an afterthought Take discount without prompt payment and/or discounts not taken |
Consistently negotiate payment terms as part of the deal Understand the true value of discounts A/P structured to take clients and prompt pay |
| Rationale | |
|
|
| Details | |
| 100 percent of purchases include payment terms as part of negotiation strategy 95 percent of discounts taken 80 percent of payment dates made |
|
Best Practice | Case Study | Commentary
April 5, 2000
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