Strengthening the Supplier Relationship

Strengthening the Supplier Relationship

February 24, 2019

What are your thoughts on supply chain finance (SCF) programs? In these programs, companies extend access to low-cost capital to their suppliers.  The goal is stronger suppliers, with higher production volumes and better production capabilities. The end result is a stronger supplier relationship.

This post is based on the Supply Chain Brain article, Three Cost-Effective Reasons to Invest More in Your Suppliers, by Nathan Feather, February 11, 2019. Image source: Shutterstock / Ieva Geneviciene.

Discussion Questions:

1. Do a quick web search of a retailer such as Wayfair or IKEA. How would a supply chain finance program improve supplier relations?  Be specific in naming suppliers. (This activity may require a web search of several of the suppliers to the retailer firm chosen).

Guidance: Students choose a retailer and then research at least one supplier to the retailer.  Have students describe how a supply chain finance program would increase production and/or improve production capabilities for the supplier that would benefit the retailer.

2. Why would a supplier be hesitant to accept a supply chain finance program arrangement from a major retailer?

Guidance: Students should consider the risks of being so tightly aligned with any Continue reading