In a statement from the White House, SupplierPay will "strengthen small businesses by increasing their working capital, so they can grow their business and hire more workers." Some of the companies that have agreed to this program include J&J, Cardinal Health, IBM, Honda, Apple, and Coca-Cola.
This sounds like a good plan but I'm still trying to find out if GM has signed on to this program, or Ford or Fiat Chrysler. And I'm researching the criteria for qualifying as a "small business." Obviously, there are likely some guidelines to qualify under this program.
However, it's a sad day when large OEMs have to be told to pay their suppliers in a timely manner so that they can stay in business, grow their business and hire more people. It should be obvious that paying suppliers is critical to optimizing the supply chain. But for many OEMs - especially those in the automotive industry - paying smaller suppliers such as mold manufacturers (which are typically privately-held or family owned businesses) doesn't seem to be a high priority.
With all of the concern over the past year from the automotive OEMs about the financial health of their suppliers, you'd think they'd make the connection between paying their suppliers in a timely manner and the financial strength of these companies. More than a few mold companies have gone out of business over the past few years due to the length of time it takes many of the automotive OEMs to pay for the mold.