Tom Finn and Alan Veeck explore why the procurement department should be viewed as the "internal bank" of an organization by strategically managing cash flow and payment terms. We break down the massive financial impact of Days Payable Outstanding (DPO), illustrating how shifting from Net 30 to Net 90 can unlock over $300 million in working capital for large-scale operations. The discussion weighs the benefits of holding cash against the high returns of early payment discounts, noting that a 2% discount for paying in 10 days can equate to a nearly 40% annualized return. Alan shares hard-won lessons on "cash batteries" and mobilization fees, while Tom warns about the hidden interest costs and tricky "End of Accumulation Period" (EOAP) terms that can trap unsuspecting buyers. All this on the latest episode of Rebuild Procurement.

#PaymentTerms #Procurement #WorkingCapital #CashFlow #FinanceStrategy #SupplyChain #DPO #RebuildProcurement #BusinessFinance #TomFinn #AlanVeeck #Treasury #FinancialIntelligence

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With Alan traveling this week, Tom Finn takes the lead to explain why procurement professionals are actually the firm's most important asset managers. He breaks down why we must shift from chasing simple "savings" to protecting a company's hurdle rate and return on invested capital. The episode explores the high-stakes risks of "shadow debt" and IFRS 16, where a standard contract signature can accidentally trigger a bank covenant default. We also analyze Boeing's multi-billion dollar "integration tax" failure and contrast it with Apple’s successful strategy of outsourcing execution while keeping design complexity in-house. All this on the latest episode of Rebuild Procurement.

#Procurement #CapitalAllocation #IFRS16 #SupplyChain #FinanceStrategy #Boeing #Apple #AssetManagement #RebuildProcurement #TomFinn #ROIC #BusinessFinance

Apple Podcasts
podcasts.apple.com/us/podcast/rebuild-procurement-podcast/id1768130877

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Most economists focus on Gross Domestic Product (GDP), but Tom and Alan argue that staring at GDP is like trying to drive a car by looking only at the odometer—it tells you how far you’ve gone, not where you’re going. In this episode, we dive into Gross Output (GO), the $42 trillion "dark matter" economy that represents the B2B supply chain and transacts at double the volume of the consumer market. We explain how the "Purchase Order" as the atomic unit of economic activity, transforming potential demand into kinetic energy that moves the physical world. You'll also learn about the "Bullwhip Effect" through the infamous Volvo green car story and why procurement must transition from being a "cost center" to a team of "capital allocators". Join us on the latest episode of Rebuild Procurement as we discuss this and much more!

#GDP #GrossOutput #Procurement #SupplyChain #Macroeconomics #CapitalAllocation #Economy2026 #BullwhipEffect #B2B #BusinessStrategy #RebuildProcurement #TomFinn #AlanVeeck #PurchasingPower

Apple Podcasts
podcasts.apple.com/us/podcast/rebuild-procurement-podcast/id1768130877

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podcasts.apple.com/us/podcast/rebuild-procurement-podcast/id1768130877

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