Delaying payments to suppliers

The true cost of delayed supplier payments 

Step-in Clause: Risk Mitigation or Supplier Bullying?

Are you aware that this is affecting supplier relationships?

The Animal Kingdom of Supply Chain Relationships

Are you a polar bear, like the majority?

Proactive Supplier Management Crucial in Wake of Silicon Valley Bank Collapse

History repeats itself, once again

Central banks around the world had assured us that banks would no longer fail like they did during the 2008 Banking Crisis, but here we are again with yet another very public collapse (and a not so well publicised collapse of Signature Bank NY on 12^th March 2023). Of course, the circumstances are different to the 2008 Banking Crisis days, and there is probably a low risk of the banking system collapsing, but the story is compelling.

As it has been well publicised, Silicon Valley Bank (SVB) was declared bankrupt on Friday, 10^th March 2023. They were the 16^th largest bank in the US. What allowed a bank of such scale to fail so rapidly? The key distinction lies in the prevalence of social media, which enabled the downfall to play out in real-time on Twitter within a single day.

The uniqueness of SVB is that it specialised in providing banking to many venture-backed technology and life sciences companies in the US and was a personal banker to entrepreneurs and underwriting company listings. At the height of the low-interest rate era in 2021, SVB got flooded with money seeking higher returns, creating a situation of excess liquidity. To satisfy shareholders, SVB invested massive amounts of these excess funds in government-backed securities carrying a high (for that time) interest rate of about 1.64% pa. However, the funds were locked in for an extended period, ten years and more. This improved the profitability of SVB in the short term but exposed them to potential risks in case interest rates rose quickly, which at that time was unthinkable. Rapid interest rate hikes in 2022 devalued this securities portfolio, with mark-to-market losses apparently exceeding SVBs total capital.

APRA's tightening up on supply chain accountability

Are you ready?

Supplier cheats on ethics exam

Can you trust a supplier that cheats on an ethics exam...?

The Rise of Ghosting Suppliers

Why you should never ghost suppliers

Influence of Ukraine on Supply Chains and Supplier Management

In one swift move, Russia’s invasion of Ukraine has disrupted European supply chains and the repercussions are expected to be felt across global networks.

The assault on the country means supply chains that depend on it for the production of everything from food, to chemicals, metals and gas; as well as those who rely on supplies coming out of Russia, are set to be affected.

And, without supply chain mapping, companies might not even know it yet.

The skills and behaviours needed to produce sustained value

Successful supplier management occurs when both sides work together for mutual benefit. As the best performing procurement functions know, it is not about something that’s done to suppliers, but instead relies on true collaboration between both parties.