When collecting the payables information to calculate DPO, should we include payables to our material suppliers only (in other words, only payables for the cost of our goods)? What about payables for our storage fees, etc ? Should that be included?
– Vera

The answer is yes; all supply chain related payments should be included in DPO. DPO is a metric that intends to measure the ability to manage company assets. DPO indicates how much money is due to suppliers. The faster you pay your bills the higher the risk that you need to borrow money to run your supply chain. For a supply chain this would include all goods and services procured to support supply chain operations.