Boeing’s move is just another example of a global MNC using their buying power to improve their working capital management at the expense of their suppliers. Sadly ,it is bound to happen in competitive industries - Boeing are under huge market pressures, nevertheless there are things that can be done to protect suppliers, as Ad Van der Poel, SVP, Financing Services at Basware points out: “We do need to recognise the impact this type of action has on business development. Many supplying companies will be put at risk by restricted cash flows. Every business needs to take responsibility for themselves and their supply chains, which includes reasonable payment terms. As an alternative, Boeing could address its challengewith the help of a third party or by paying its suppliers early and negotiating discounts.”

What Boeing could have done 

Here are some of the things Boeing could have done/should do:

• read our Checklist on ‘How to  really piss your suppliers off with your payment terms, procedures and systems’ to find out whether there are any other tricks they have missed
• read CTMfile’s ‘Seven tips for a happier financial supply chain’
• read Basware’s superb dynamic infographic: ’This is commerce’ and looked at how Basware’s Commerce Network can be used in optimising supply chain efficiency
• offer supply chain finance services and dynamic discounting from suppliers such as: Basware, PrimeRevenue (who are partnering with SAP), C2FO and Taulia
• use supply chain finance services that are integrate with TMS, see: ‘Supply Chain Finance solutions now available in all parts of chain, who needs banks?’
• integrate their WCM programme with a supply chain finance supplier, see ’Hanse Orga and Taulia partner to provide new ways to manage working capital’

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CTMfile take:  Boeing should remember, “Late payments by large companies are a cancer, costing jobs & inhibiting recovery”. They are irresponsible and destructive.