It is no secret that supply chains can be disrupted by their weakest links. But in the last recession life got tougher for a critical piece of many supply chains – small suppliers to big firms. Large firms moved to pay their suppliers more slowly – corporate payables increased from an average of 35 days in 2009 to 46 days in 2014. This, of course, increases capital costs for suppliers. Not surprisingly, small firms cost of capital is significantly higher than that of big firms. They have a much harder time financing a longer receivables cycle than the large firms they do business with. … – Source
Obama's SupplierPay Program Off to a Good Start
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