Question: respond to Companies that have a strained ratio, say 0.7:1, may be a predictor of a higher DSO customer, as the company may be delaying

respond to Companies that have a strained ratio, say 0.7:1, may be a predictor of a higher DSO customer, as the company may be delaying payment due to liquidity challenges. Similarly, a company with a high debt-to-equity ratio may indicate to a downstream customer their overall financial stability. This could be important for a healthcare system that negotiates a sole source contract with this company for a critical supply, say, IV solutions. If the company is strained by debt, this could lead to delayed shipments, if they can't pay their upstream suppliers, or worse, the company goes bankrupt. A company with strong financial performance could enhance the supply chain through improved cooperation and coordination. I work in the healthcare supply chain, and we use a primary med/surg distribution partner. My health system shares the supply-demand forecasts with our distributor to ensure optimal stock levels at the local distribution center. This leads to increased fill rates and reduced stockouts, avoiding increased costs to expedite shipments or alternate source. This type of data sharing requires IT resources on both sides to build the interfaces. If a company has poor financial performance, they are less likely to invest in this type of supply chain efficiency

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