The AFP Payments Guide: Optimizing DPO: A Strategic Approach to Working Capital, underwritten by Wells Fargo, examines how organizations can use days payable outstanding (DPO) as a strategic tool to strengthen liquidity, improve cash flow and enhance working capital performance. The guide explores the key drivers of DPO, common optimization strategies and the balance between extending payment terms and maintaining strong supplier relationships. It also highlights how treasury, accounts payable and emerging technologies can work together to support more informed and effective working capital decisions.

This guide helps payments and treasury professionals:

• Understand how DPO influences liquidity, cash flow and overall financial performance.
• Evaluate the tradeoffs between extending payment terms and maintaining strong supplier relationships.
• Identify practical strategies to optimize DPO without creating supplier risk.
• Align treasury, accounts payable and procurement teams around shared working capital goals.
• Take advantage of automation, analytics and emerging technologies to improve payment timing, visibility and decision-making.
• Benchmark DPO performance and develop a more strategic approach to working capital management.

View the Interactive Guide  

What’s Inside the Guide

• Understanding DPO - Optimize DPO with a clear understanding of the factors that influence payment timing, supplier relationships and working capital performance. Examine how DPO is calculated and benchmarked, why higher DPO is not always better, and how organizations can balance liquidity objectives with operational and supplier considerations to support long-term financial health.

• What is a "Good" DPO? - Determine the right DPO for your organization by evaluating industry benchmarks, business objectives and supplier dynamics. Explore why a "good" DPO is not simply the highest possible number, but one that balances liquidity needs with supplier health, operational efficiency and long-term growth.
  


• High Versus Low DPO - Understand the strategic implications of different DPO levels and the tradeoffs associated with each approach. Explore how a higher DPO can improve liquidity and working capital, while a lower DPO may strengthen supplier relationships, support favorable terms and enhance supply chain stability.
  


• Measuring and Benchmarking DPO - Gain the insights needed to evaluate DPO performance more effectively through accurate measurement and meaningful benchmarking. Explore key calculation methods, industry comparisons and performance indicators that help organizations assess their payables strategy, identify opportunities for improvement and make more informed working capital decisions.
  


• Strategies for Optimizing DPO - Develop a strategic approach to DPO by evaluating payment terms, supplier segmentation, process improvements and technology investments. Discover practical ways to enhance liquidity and working capital performance while maintaining strong supplier relationships and supporting long-term business objectives.
  


• How Technology is Reshaping DPO - Explore how automation, analytics, AI and modern payment technologies are transforming the way organizations manage payables and working capital. Learn how greater visibility, data-driven insights and streamlined payment processes can help finance teams optimize DPO, improve decision-making and enhance operational efficiency.
  


• Balancing Liquidity with Supplier Relationships - Balance working capital goals with the importance of maintaining strong supplier partnerships. Explore strategies for managing payment timing, negotiating terms and strengthening collaboration in ways that support liquidity objectives while promoting supplier stability, trust and long-term business value.
  


• The Future of DPO Management - Explore the trends and strategic priorities shaping the next generation of DPO management. Learn how evolving technologies, data-driven decision-making and greater collaboration across treasury, accounts payable and procurement are helping organizations optimize working capital, enhance financial agility and build more resilient supplier ecosystems.
  


• Looking Beyond the Metric - Look beyond DPO as a standalone metric and gain a broader perspective on working capital performance. Explore how DPO connects to liquidity, cash flow, supplier health and overall business strategy, helping finance leaders make more balanced decisions that support long-term value creation.
  

Companion Webinar

Optimizing DPO: A Strategic Approach to Working Capital
Dec 2 | 3 - 4:00 PM ET

Register Now

Who Should Use This Guide and Why?

• Corporate Treasurers looking to improve liquidity and working capital performance through more strategic management of days payable outstanding (DPO).
• Treasury Managers responsible for cash forecasting, liquidity planning and working capital optimization who want practical strategies for balancing cash preservation and supplier relationships.
• Accounts Payable Leaders seeking to improve payment timing, streamline processes and align AP activities with broader treasury and working capital objectives.
• CFOs and Finance Leaders looking to strengthen cash flow, improve operational resilience and better understand the strategic role DPO plays in financial performance.
• Working Capital and Cash Management Professionals who want to evaluate DPO alongside other key metrics to drive more effective liquidity management.
• Payments Leaders and Specialists interested in how payment strategies, terms management and payment technologies can support DPO optimization efforts.
• Treasury and AP Technology Professionals evaluating automation, analytics and AI solutions that can improve visibility, efficiency and decision-making across the payables process.
• Procurement and Supply Chain Leaders seeking guidance on balancing payment-term strategies with supplier health, collaboration and long-term business objectives.
• Finance Transformation Teams looking for practical insights into how cross-functional collaboration and digital tools can improve working capital outcomes.
• Organizations Focused on Working Capital Improvement that want a strategic framework for optimizing DPO while supporting liquidity goals and maintaining strong supplier relationships.
  

Download or view the interactive guide to explore the strategies, technologies and best practices helping organizations optimize DPO, improve financial flexibility and make smarter working capital decisions in an increasingly dynamic business environment.

View the Interactive Guide