According to an article on Publisher\u2019s Weekly\u2019s website, the once-powerful Borders bookselling chain has suspended payments to suppliers due to cash flow problems. Of course, its major suppliers have cut off shipments until they are paid.<\/p>\n
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The result? A nearly 20% one day drop in Border\u2019s stock price.<\/p>\n
Ouch.<\/p>\n
Now, Borders might be in dire financial straits. But many organizations are less than diligent with supplier payments even when they are healthy.<\/p>\n
Because this matter with Borders makes it clear that ability \u2013 or even perceived ability \u2013 to pay suppliers can be a powerful indicator of financial health, you should be able to understand how a procurement department can positively or negatively impact stock price by its supplier payment policies and practices. Pay those suppliers in accordance with your agreements and support a high stock price for your organization!<\/p>\n
Why is stock price important?<\/p>\n
Well, a significant percentage of most publicly-held company\u2019s senior management\u2019s net worth is dependent on stock price. You wouldn\u2019t want your CEO upset with you because late supplier payments wiped out 20% of her net worth would you?<\/p>\n","protected":false},"excerpt":{"rendered":"
According to an article on Publisher\u2019s Weekly\u2019s website, the once-powerful […]<\/p>\n","protected":false},"author":12,"featured_media":4084,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n