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Working Capital

The Economic Benefits of Reducing Supplier Working Capital Costs

Large firms depend on suppliers for most of their value-added. Many suppliers are small and their viability is closely tied to their ability to access and manage working capital. The Obama Administration’s SupplierPay initiative was developed to bring companies together to address the working capital challenges facing small firms. This paper explores the potential economic benefits -- throughout the supply chain -- of reducing suppliers’ working capital costs.

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