Terms dispersion
Payment terms vary widely between suppliers in the same category — exposing negotiation inconsistency rather than market reality.
All projects
Procurement Analytics
Procurement Payment Terms Analytics
Understanding payment terms — and what they cost.
- Power BI
- DAX
- Power Query
- Star Schema
Overview
Payment terms varied widely across suppliers and countries, but no single report showed the full picture. This analytics build measures average and supplier-level payment terms and quantifies the working-capital impact of term differences.
Country and category breakdowns highlight where terms are outliers, and scenario views show the financial effect of adjusting terms with key suppliers.
The business problem
Procurement negotiated payment terms supplier by supplier, but the impact of those negotiations was never measured in aggregate.
Finance and procurement each held a partial view, and the cash-flow effect of a 15-day term difference across hundreds of suppliers was simply invisible.
Payment terms by supplier
Country view
Sup 01
45 d
Sup 02
30 d
Sup 03
60 d
Sup 04
24 d
Avg terms
42 d
+3 d YoY
Objectives
- Measure average payment terms at company, country and supplier level
- Identify outliers and term inconsistencies across categories
- Quantify the working-capital impact of payment-term changes
- Give negotiators factual benchmarks before supplier discussions
Data architecture
- 01
Source systems
Accounts payable and payment records extracted from finance systems.
- 02
Power Query transformation
Term definitions normalised across inconsistent contract formats and legacy codes.
- 03
Star schema model
Invoice and payment facts with supplier, country, category and date dimensions.
- 04
DAX measure layer
Weighted average terms, term-mix and working-capital impact measures.
- 05
Dashboard layer
Country and category breakdowns with scenario comparison for term changes.
Dashboards
Payment terms by supplier
Country view
Sup 01
45 d
Sup 02
30 d
Sup 03
60 d
Sup 04
24 d
Avg terms
42 d
+3 d YoY
Payment terms by supplier
Country view
Sup 01
45 d
Sup 02
30 d
Sup 03
60 d
Sup 04
24 d
Avg terms
42 d
+3 d YoY
Key insights
Country effects
Country-level patterns show where local market practice, not policy, is quietly setting terms.
Small shifts, big impact
A shift of even a few days across the supplier base has a material working-capital effect — making terms a negotiable, measurable lever.
Outcomes
Evidence-based negotiation
Negotiators now carry factual country and category benchmarks into supplier discussions.
Outliers surfaced
Outlier terms are surfaced automatically instead of being discovered in audits.
Cash-flow visibility
Term scenarios quantify working-capital impact before commitments are made.
See the report in action
Live report coming soon — this case study will link directly to the published report.