Looking Beyond the Metric
Many business variables — interest rates, customer demand and market conditions, for example — remain outside a company’s control. Payment strategy is different; within negotiated supplier agreements, organizations have considerable influence over when and how they deploy cash.
That makes DPO far more than a financial performance indicator. Organizations that treat it as a strategic working capital metric can strengthen liquidity, improve operational resilience and build stronger supplier relationships at the same time.
Technology will continue to make payment decisions faster and more intelligent, but successful DPO management will always depend on sound judgment, thoughtful supplier partnerships and a balanced approach to working capital. The companies that perform best will not necessarily have the highest DPO; they will have the right DPO for their business objectives.
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About the Authors
Anne Battle Schultz Freelance Writer and Editor
Anne Schultz is a freelance writer and editor with over 25 years of experience in turning complex topics into accessible content. She writes about a variety of topics, such as financial services, payments, fintech, management consulting, and technology. She holds a B.A. in English from Davidson College. In her free time, she enjoys reading, live music, and spending time with her husband and three children.
Tom Hunt, CTP Director, Treasury Services, AFP
Tom Hunt, CTP, is the Director of Treasury Services at the Association for Financial Professionals. Hunt has more than 15 years of direct treasury experience working across different industries, including various roles at Medtronic, Fairview Health Systems and, most recently, at 3M Company. At 3M, he oversaw the global banking strategy, redesigned and implemented a new domestic cash management structure and led acquisition activities for the treasury department. He holds an MBA in finance from the Opus College of Business at the University of St. Thomas in St. Paul, MN.
