P&G- Cleaning out the suppliers, flow with the Tide?

P&G taking longer to pay suppliers, offers financing - Yahoo! Finance: "(Reuters) - Procter & Gamble Co (PG.N) is increasing the time it takes to pay for supplies and offering financing to help mitigate the impact a longer payment cycle could have on small and midsize businesses, the household products maker told suppliers earlier this month.
P&G plans to increase the time it takes to pay suppliers by as much as 30 days, which could free up to $2 billion in cash, the Wall Street Journal reported, citing people familiar with the matter.
The world's largest household products company is seeking to pay its bills in 75 days from the average of 45 days it takes currently, the paper said.
In a letter dated April 5 on a P&G website for suppliers, the company said that its "working capital program will focus on moving to longer payables with our external business partners."
The letter from Chief Purchasing Officer Richard Hughes said that P&G discovered that its payment cycle was out of line with those of its competitors. Hughes said in the letter that P&G planned to offer supply chain financing through banks."

'via Blog this'