Prominent business and supply chain analyst Jon Hansen says when buyers try to improve working capital position at the expense of suppliers, bad things happen usually. Supply chain financing is a tool that mutually benefits the positions of both stakeholders, creating win-win buyer-supplier situations.
Back in May I read a post by Eyal Rosenberg, CEO of payment automation software maker Nipendo, who made reference to an auto industry survey that highlighted the importance of supplier liquidity, including the negative impact that a slow payment process has on the buyer supplier relationship. Specifically, Rosenberg pointed to the finding that automakers “that maintain positive relationships with suppliers tend to offer the best products at affordable prices.”
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