Published:
Supply chain cash flow slows, reversing 4 month trend, according to Cortera's October 2009 Supply Chain Index
QUINCY, Mass. & BOCA RATON, Fla. - (BUSINESS WIRE) - Cortera ,
a community-driven business information company, announced the
publication of its October
2009 Supply Chain Index (SCI) report, a monthly index of accounts
receivable (A/R) activities covering manufacturers, distributors &
wholesalers, retailers, services, and transportation companies.
Measuring payment activities of approximately 350,000 businesses, the
October SCI indicated the slowing of payments and related cash flow
throughout the overall supply chain, reversing four
consecutive months of improving conditions. While the exact cause of
the shift remains in question, it could represent an early arrival of a
similar seasonal pattern seen over the past couple of years (2007 and
2008), as manufacturers, suppliers and retailers take on additional
trade credit related debt in advance of the critical holiday shopping
season. Overall, the index remains 40 percent higher than pre-recession
levels.
"An abrupt slowing of payments and cash flow throughout the supply chain
typically indicates a waning confidence in sales. But we've seen similar
spikes occur in the past, as supply chain stakeholders make significant
upfront investments in preparation for the holiday shopping season,"
said Jim Swift, president and CEO, Cortera. "What makes this one
potentially puzzling is the timing. We're either looking at the impact
of businesses stretching out such debt over a longer period of time or
confidence in the strength of a recovery has dropped over the past
month."
The Cortera SCI tracks late payments against agreed upon terms,
measuring late accounts receivable (Late A/R), excessively late accounts
receivable (Late A/R >30 days), and overall average days beyond terms
(Average DBT). A two year view of this data is available on Cortera's
website. The Cortera SCI report is published monthly.
About Cortera
In a sea of business information providers, Cortera is different. With
over 15 years of experience serving finance professionals, Cortera
combines premium business information and innovative tools with a fresh
community approach to commercial credit. It represents the first
community for small business credit reporting and a fundamentally new
way to capture the collective insight of millions of financial
transactions. As a result, small businesses can make smarter, informed
decisions to ensure optimal cash flow while attracting more favorable
payment terms from existing and potential business partners.
For more information on Cortera, please visit http://www.cortera.com.
VerColen Communications
Craig VerColen, 617-599-2180
craig@vercolen.com
or
Cortera
Alex
Coté, 857-403-1370
Copyright © 2009, Business Wire, Inc., All rights reserved.
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