From AP on 3/6: “payments are in hold, provide us the business justification to send the same to corporate for necessary approvals and to expedite the payment.” And then a follow-up: “currently payment is rationed for each and every invoice. Hence, we request you to provide us the business justification to send the same to corporate to have the payment expedited.” Does anyone think Mikey and Paul are reporting these payables during the quarterly results?
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DXC is up to their non-payment of suppliers again, It seems to be standard practice.
When DXC does not pay on time the for suppliers the resolution is to put DXC on credit hold until the outstanding debts are paid. However when an important procurement is required ASAP from the suppliers in question then ML & co will do diddly squat to hasten payments as the books need to be cooked, but this causes reputational damage to DXC (again ML & co just don't care).
Forgive me, but the comment that HPE folks are taking over everywhere is so funny. All of the senior HPE leaders who came over to DXC were shown the door before the end of the first year. It's clear that HPE ES was acquired by CSC and is painfully being assimilated.
Not paying suppliers is great for cashflow! It is also good to make the numbers the first few quarters. Down here suppliers have to threaten to stop the service or go to court in order to get paid so it is also great for the brand reputation!
This has been reported before. DXC culture I guess.
Yes they do this ALL the time. Simply hold all vendor payments to cook their books for fictitious results helping to get closer to the aspirational budgets made up my ML. Vendors beware.
a DPO of 67 days is the global average. Anything below 40 is also likely to mean poor cashflow management. Unlike the energy sector, the technology sector is deterirating in its DPO as it creeps up.
150 days is a higher than average DPO. Globally, the situation has improved as Industries have realised high DPO is not sustainable and realise there is more to be gained in beuilding strong relationships with suppliers than bullying them. Suppliers would need a great incentive to want to accept the risk of snarling up their own supply chain by having DXC as a customer and even if they tried to offer their own incentives for earlier payment, DXC would simply say no, deal with us or don't. Sad world.
The EDS / HPE metric was 60 days from the middle of the month before a supplier gets paid but now the DXC norm is 105 days from the middle of the month. Poor suppliers having to wait at least 3 months to receive payment whereas DXC has already banked the revenue. Morally corrupt and quite illegal.
Don't Xpect Compassion
This is def NOT a CSC Practice, to whomever wrote that. HPe folks are taking over everywhere and us CSC folks are getting WFR'd
They just don’t care. It’s a totally morally bankrupt organisation. Has been since day one. They don’t even treat their own employees with respect, let alone its customers.
This is standard CSC practice, never heard of in the HP / HPE days.
They've been doing this since DXC came into existence - I always assumed that they were doing it deliberately to kick payments from one quarter to another to make the results look less bad