Payment Terms Improvement

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BHP has announced it will be reducing the amount of time it takes to pay its suppliers to thirty (30) days:

https://www.linkedin.com/pulse/resource-industry-network-welcomes-bhp-announcement-30-day-network/

This has a number of significant, positive impacts on its supply chain in the Mackay region.  The effects will be felt across hundreds of firms in the region.

Earlier this year Lytton Advisory did analysis on the impacts of extended payment terms for the Resource Industry Network, which included some modelling of different effects.  Details of the report are publicly available:

http://www.resourceindustrynetwork.org.au/announcements/report-shows-big-opportunity-being-missed-in-regional-economy-when-adopting-extended-payment-terms

 

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