Why is this better?

One of my clients is a pretty big company, and they just sent an email saying this:

In our effort to increase working capital… we have improved our average Days Payable Outstanding (DPO). However, a recent benchmark study has shown that we have lost ground to our competitors.

Okay, so they’re saying they’re getting better at paying invoices (like the ones I send to them), but they’re still behind other companies. That’s good to know, and I’d expect them to do something to gain back that ground. They go on:

We believe the most critical action we can take to improve our DPO is extending terms, improving our competitive position to invest in growth and make strong financial decisions.

Umm… what?

Because they’re losing ground in the number of days it takes them to pay their suppliers, they’re going to… intentionally increase the number of days it takes them to pay their suppliers.

I’ll never understand big business, I guess.