L3Harris a multi billion company is paying their vendors @ 120 days after invoice due date. Needless to say vendors are very arngry. Sometimes my dept spends more time trying to get accounts payable to respond to requests for payment.
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L3 has consistently done this from what I know. L3 would send e-mails to customers who didn't pay their bills and put them on credit and ship holds which made it a pain when in a rare occasion there was actually something that could ship to them. It was this whole thing where you had to beg the Purchasing folks to clear their past due status temporarily, and they didn't like doing it. Yet, if the manager of a certain department heard that a 'big contract' was on the way, she'd allow select customers to go over a year without making a payment just so she could put a potential award on a report. It's all a smoke and mirrors joke, especially in Grand Rapids. Lots of issues inherited from Sarasota too.
Info available in each company’s website.
would you want to wait 60 days to get paid? And 30-45 days is more like industry standard.
Payment terms are N60, which is probably the industry standard. Exceptions are small businesses and previously negotiated terms. There are issues that could be the suppliers error or L3Harris’ error that may cause delays. The end of the year check hold, a “cash flow” thing. L3Harris is not the only company to do this.
They are absolutely doing this. since I only know the defense industry I jumped to another company in the field after the Cube ran me out of town. We now have the misfortune of selling to LHX and we have to beg and plead and threaten to stop shipments to get this unethical company to bay their bill!
Sounds about right. There is really only one thing that this company cares about... Cash.
I can't imagine this is a widespread practice. Vendors know they will get paid but 120 days delay is pretty bad. But the guy who mentioned end-of-year financial shenanigans is probably right. Meanwhile some other section is beating up on L3H customers trying to get paid :)
What locations? That is horrible.
They are trying to prove the merger created synergies in supply chain. Floating money so the end of year looked good.