Identify AP improvement opportunities
Gardenia shows you which specific suppliers to target to hit your DPO goal - ranked by the improvement each one would deliver.
What you can do:
- See your current payment position - Average payment terms across all suppliers, and how your spend is distributed across different term lengths
- Run payment term scenarios - "What if we extend to 60 days?" or "What if we match supplier benchmark terms?" See exactly how much DPO improvement each scenario delivers
- Get your target supplier list - See every supplier ranked by their potential DPO contribution: invoice amount, current terms, target terms, improvement in days
- Apply the 80/20 rule - Identify the small number of suppliers (often 10-20) that represent 80% of your potential DPO improvement
- Focus negotiations strategically - Approach the high-impact accounts first rather than spreading effort across hundreds of suppliers
Why it matters:
When finance says "improve DPO by 15 days," most AP teams either pick their biggest suppliers (wrong prioritisation) or try to renegotiate with everyone (wasted effort). Neither works well.
The biggest supplier by spend might already have 60-day terms - there's nothing to improve. A mid-sized supplier currently at 30 days with £3M annual spend? That's 30 days × £3M in potential working capital improvement.
Gardenia runs the initial analysis for you. It shows you that to hit your DPO target, you need to focus on these 15 specific suppliers. Not your top 100 by spend - these exact 15 accounts. That's the list your AP team takes into negotiations.
