Not only is SupplierPay a good public relations move, but it is also such a tremendously worthwhile movement.
It was my great thrill and honor to pay a visit to the White House this week as the Obama administration expanded its SupplierPay Initiative.
Originally launched in July, the initiative, which encourages corporations to pay their suppliers earlier, had 21 more companies sign on at a reception hosted on Monday, November 17.
SupplierPay now has 46 companies who have taken the pledge, including numerous Taulia clients. Several of these Taulia customers participated in Monday’s discussion, which was led by National Economic Council Director Jeff Zients and Small Business Administration Administrator Maria Contreras-Sweet.
The initiative illustrates that the health of the US economy depends on both big businesses and small business, and on how well those two sectors of our economy work together.
Seeing the big picture
It’s often hard for the public to see small businesses and corporations working together, but it’s often the case. In fact, corporations play a vital role in supporting their small businesses suppliers as well as their diverse suppliers. When big businesses pay suppliers in a timely fashion, it allows small businesses to invest in and grow their business—and ultimately it strengthens their own supply chains.
An article in Forbes explains that when it comes to corporate social responsibility, an organization’s motives can be self-interested, but generally that self-interest also serves a greater good. A company’s motivation “rests on the recognition that attention to corporate social and environmental responsibilities is generally in the long-term economic interests of the firm.” In other words, yes, doing the right thing is a good public relations move, but just as importantly, it’s also good for business.
Giving suppliers the option to be paid earlier is another example of how doing the right thing can also be good for business. After all, suppliers provide the lifeblood of a business, they can jump ship and serve competitors, and it costs time and effort to find and onboard another supplier if one goes out of business. Clearly, suppliers’ interests are in the best interests of a buying organization, as well. And they may be in the best interest of the economy, too.
How so? In addition to the reception, the Department of Commerce released a report highlighting the benefits to the economy of early payments to suppliers. The report noted that, “reducing supplier working capital costs unlocks supplier capital to be put to work for the benefit of the economy – their large customers included.”
We couldn’t have said it better! Want to learn more how you can help your bottom line, your suppliers, and the economy? Watch our webinar video, What SupplierPay Means For Your Business and How to Get Ahead.
About the AuthorMore Content by Cedric Bru