Increasing cash flow key driver for supplier initiatives

Companies are focusing their supplier management efforts this year on increasing electronic funds transfer (EFT) enablement, e-procurement enablement and supplier risk assessments, according to the results of a new survey from supplier information management specialist Aravo.

Aravo conducted research into the most popular supplier initiatives launched by Fortune 500 companies for 2010 and found that the primary driver behind the top supplier initiatives is to increase corporate cash on hand.

According to Aravo's analysis, more than 80 percent of supplier initiatives launched in the last quarter across its community of more than 1.5 million buyers and suppliers focused on increasing cash flow. This analysis differed from a similar study conducted in 2009, in which supplier risk assessment topped the list.

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