Following yesterday’s news that Dell had been placed in the Forum of Private Business’ Late Payments Hall of Shame Dell’s David Frink, in its corporate affairs department gives us a bit more information.
This is his statement:
“The 65-day payment term is being put in place on a global basis for Dell’s non-production procurement, which includes vendors such as telecommunications companies, insurance companies, financial services, services vendors.
The change is being made to fully standardise Dell’s payments; the company’s production procurement already is on a 65-day schedule.
The standard does not apply to certain exempted diverse suppliers, including many certified small vendors, whose terms can be shorter, generally ranging from 20-45 days.
The standard does not apply in countries where there are restrictions; some examples include France, Japan, Korea, India; or in some countries in which credit costs are extremely high (Brazil).”