The Great Divide: Working Capital Efficiency in Consumer Industries

With the new year upon us, we here at Flowcast have one resolution: help companies bridge the ever increasing gap in their cash conversion cycles. Based on a study we conducted of over 300 companies from the S&P 500, we found that nearly 55% of those companies have consistently increased their Days Payable Outstanding (DPO) over the past five years. This trend is especially pronounced in the consumer industries where over 70% of companies have increased their DPO by an average of 11 days. Not exactly the best news for their suppliers going into the new year.
Take a look at Flowcast’s latest infographic to find out more:



Brewers lead the pack by a wide margin in DPO increases with 140 days. Although these increases in DPO are good news for Consumer Staples giants, it can cause issues for their smaller suppliers, who will need to find ways to make up the gap in their own cash conversion cycles. Here, we believe tech innovations in supply chain finance will help bridge the gap for both buyers and suppliers.

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