Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How One Buyer Used Payment Terms to Unlock 12 Percent Savings
In episode 77 of The Buyer's Side, Lucas and Luna explore how procurement professionals can leverage payment terms as a strategic lever for cost savings. They examine a real case: a mid-size manufacturer that extended its payment terms from net-30 to net-60 with key suppliers, securing a 2 percent discount for early payment while improving cash flow. The hosts break down the math — how the buyer saved 12 percent annually on a $50 million spend — and discuss the supplier-side perspective, the negotiation tactics used, and the risks of pushing terms too far. They also touch on dynamic…
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