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14 July 2014 | Paul Snell
Some 26 companies have signed up to an initiative launched by US president Barack Obama, pledging to pay their suppliers more quickly.
The global corporations – which include Apple, Coca-Cola and Lockheed Martin - have signed up to the SupplierPay pledge.
This commits the companies to provide a working capital solution to their small business suppliers (either by paying them faster, or providing some form of supply chain finance); to share best practice by publicising their efforts; and to implement a “win-win” solution, by ensuring the burden of any new initiatives are minimised.
“For the larger companies, joining SupplierPay demonstrates a recognition that a healthy supply chain is good for business. For the small business suppliers, benefiting from SupplierPay means having more capital to invest in new opportunities, new equipment, and new hiring,” said a statement from the White House.
President Obama has also renewed the QuickPay scheme, which requires federal government agencies to pay suppliers within 15 days, and in turn demands those vendors pay their own subcontractors faster.
The 26 companies that have signed up to SupplierPay are Apple, AT&T, Authentix, Cardinal Health, Coca-Cola, CVS, Ericsson, FedEx, Honda, IBM, Intuit, Johnson & Johnson, Kelly Services, Lockheed Martin, Milliken, Molina Healthcare, Nissan, PG&E, Philips, Rolls-Royce, Rothschild North America, Salesforce, Textura, Toyota, Walgreens and Westinghouse Electric Company.