why is this not a priority?
8 replies (most recent on top)
OP screwing the vendors is another savings tactic, right Kathy?
Inquiring minds want to know if hoookers are considered as "vendors?"
If so, they must be the first to get paid before anyone else. Otherwise, we will have another LaQuinta type of event, which gives us all a really bad name.
Another basic function that is a D- at best.
All I know is even if they submit everything perfectly we can take up to 3 months to pay. If that isn’t a free loan I don’t know what is. Meanwhile if I don’t submit an expense report right away I start getting all kinds of automated emails and so does my supervisor saying that I need to submit. One time the company overpaid me and boy did they want their money back fast
Vendor negotiators who are eager to provide services to XOM rarely read the details of the payment terms in the contracts they sign. They consider it "back office" information that their own billing clerks will handle. When the vendor's billing clerks prepare invoices in "their usual manner" and submit them to XOM, many are unaware of the very specific invoice support requirements spelled out in the contract (signatures, reams of documentation, etc.). This usually involves having to coach and educate the vendor's billing personnel. In the meantime, the vendor invoice won't be paid until it meets all the contract payment terms. This is an internal control process that XOM management has had in place since the origin of the company. It has nothing to do with using the vendors' money as a "free loan," which would be an unethical business practice.
You can blame the service functions, but just remember, it's the MC that approves these decisions. Kathy needs more money to acquire more companies and pay grandma dividends.
The GBC teams try their best to help. The outsourced teams aren't going to care if your vendor gets paid.
Two choices: Get off the sinking ship or learn to play with the band. I'm getting off the ship soon.
I have a vendor that will no longer sell to us because it took us close to 2 years to pay them the last time.
This is a topic that really pi---s me off.
Every so often someone in procurement gets a ranking boost by convincing clueless executives that if we don’t pay out vendors it is like a free loan and you know time value of money.
The problem is vendors aren’t stupid and just charge us more. Who do you think has to pay a higher interest rate for a loan? Out vendors or ExxonMobil?
More recently with payments being processed outside the USA procurement needs more time to try and process the paperwork. Sadly they rarely do it right and it is just a ton of more work for US employees and then vendors are paid late.
But hey at least some Hippo got to put it all on their PDS as a great idea worth millions when in reality it is costing the company more.