Encouraged by the government, public sector buyers acted fast to speed up payment to smaller suppliers in the early stages of the Covid-19 pandemic. Now many of those same suppliers face a ‘cash flow cliff’ as early payment comes to an end. What can public sectors bodies do to make sure a good deed doesn’t end up damaging the suppliers they aim to help?
“If you look across any organisation’s supply base, you’re not going to find that all suppliers are in the same financial position. You need to understand your suppliers, those that have done okay and those that have struggled. It would seem to me to make absolute sense to continue to pay that last category quickly.” Paul Alison – Deputy Director and Head of Financial Services, Crown Commercial Service
As we move toward the likely expiry of PPN 02/20 and its successors at the end of October, every public sector body needs a plan to manage the transition from emergency payment terms to something like normality. Download this new white paper for a five-step plan for public sector supply chain security.