An automobile manufacturing company was struggling with multiple and frequent supply chain disruptions. One of the major reasons was that smaller suppliers were not well financed and faced constant working capital shortage. Being a cash-rich organization they decided to strengthen their supply chain by running a Cash Discounting (CD) program. The faced following changes while running the program
Multiple vendors across the country
The company had multiple manufacturing plants across the country and the suppliers were spread across. As the treasury and function was centralized, it was difficult to manage such a large volume of suppliers.