These are very different markets, but the scope for systemic improvement is nonetheless compelling. Optimize throughput using information logistics. For example, aggregate figures for the economy suggest an average DSO of about 57 days. Elimination of printing, mailing, and re-keying times should be able to knock DSOs down by 10 percent if invoice data was online. Process savings from dispute resolution, fewer processing errors, and pre-reconciliation are incremental benefits on top of the time value of money from speeding up the cycle.
Firms are increasingly selective about the uses to which they put their balance sheets.
They want to get out of the business of financing other peoples working capital. However, the current receivables securitization technology was really built for funding mortgages and other long-term cash flow loans. It is too cumbersome and expensive for short-term capital loans. If corporations can use information logistics to create greater clarity around settlement and trading relationships, it will be up to buyers to grant that degree of certainty, and the ability to make it visible to finance providers, to their suppliers. This will be a valuable quid pro quo to negotiate better trade terms.