9 Box
What is it?
The 9 Box grid is a three-by-three matrix with two axes: Probability of Success (vertical) and Buyer Impact (horizontal).
Each box indicates the potential cash flow opportunity, cash discounts, spend volume, and number of parents, suppliers, and spend lines included.
Please note:
It is important to understand that the level (spend lines, suppliers, parents) at which the 9 Box is viewed will affect the results. For example, if you select Parent, all suppliers within the same parent will be in the same box based on the parent’s corresponding box even if one supplier would have been in a different box.
You can click on one or several boxes. The selection will show on the right the overall summary and below the list of suppliers included in the boxes.
Suppliers where the platform has not identified an opportunity to improve payment terms are not included in the 9 Box chart.
The 9 Box grid is a three-by-three matrix with two axes: Probability of Success (vertical) and Buyer Impact (horizontal).
Why is it important?
It helps us prioritize suppliers for the rollout of our payment terms optimization program by identifying suppliers where we are more likely to succeed in negotiating optimized terms and/or suppliers where negotiating optimized terms will have a large impact on our cash flow. Many companies start with box 1, because it represents suppliers that are most likely to agree on the new payment terms and that would have a strong positive impact on our cash flow.
