Many in the produce industry provide Blue Book Services with monthly accounts receivable (A/R) aging files as a means of sharing trading experiences. Accounts receivable are outstanding balances owed by a buyer for product purchased or services received from a seller or service provider.
Table 3 depicts monthly industry aging performance for the last 24 months, September 2016 to September 2018.
It’s important to note month-to-month averages rather than quarterly or yearly data given the frequency of this shared information, and, to observe the relative consistency of the data. Over $1 billion in cumulative monthly aging data is received by Blue Book Services from industry contributors.
Though the data is presented differently and carries a different meaning than a pay description, the information shows industry aging performance to be generally within 30 days, as does collected survey data.
Graph 3 illustrates monthly cumulative aging performance. Companies that contribute monthly A/R aging files are given access to Blue Book’s complimentary online A/R Report feature, and receive the proprietary Accounts Receivable Analysis Report.
The A/R Report is an online real-time risk feature that utilizes aggregated accounts receivable aging data from industry contributors to identify current aging performance and patterns. The Accounts Receivable Analysis Report is a monthly automated report that reflects a custom view of a company’s customers per each A/R submission and is aggregated with all other current A/R industry contributor files.
All A/R aging data is shared in strict confidence and an easy “once a month” process. Any company interested in striving for “best in class” status or standards, helping its customers’ credit profiles, saving time, and having access to real-time data that can simplify business decisions should contact Blue Book Services’ Rating or customer service departments to find how to submit this valuable information.
This is an excerpt from the most recent Produce Blueprints quarterly journal. Click here to read the full article.