Supplier Financial Capacity

1
Supplier Financial Capacity
Gary JohnsonOffice of Fleet Management
ServicesPlanning Deployment Manager
2
Overview

• Why Buyers Need to Consider Financial Capacity
• How to Calculate Financial Requirements
• Ways to Validate Requirements
• Using Dun Bradstreet Reports
• Using Understanding Financial Reports

3
Why Should We Care?

• Lack of Money Lack of Performance
• Supplies/Materials Not Delivered or Delivered
  Late (Slipped Schedules)
• Substandard Materials
• Employees May Walk Off Job
• Subcontractor Payment Issues

4
The Calculations

• Goods Contracts
• How Much is Needed When
• What Are Payment Terms w/Suppliers
• Service Contracts
• Cash Outlays Before Payment
• Strategic Cash Points

5
Validating Financial Capacity

• General References
• Credit References
• Internal Data
• Internal Financial Reports
• External Data
• Dun Bradstreet
• Whats an Edgar?
• http//www.sec.gov/edgar.shtml

6
Exercise

• Working With Dun Bradstreet Reports
• Working With Financials