The Impact of COVID-19 on B2B Payments
Seventy-five percent of supply chain managers are experiencing issues
The business-to-business (B2B) industry has had to pivot and shift as the pandemic has left everyone scrambling. Businesses who depend on global supply chains and manufacturers are greatly impacted as port closures and air travel restrictions wreak havoc on product distribution. According to a joint report from American Express and PYMNTS, 75 percent of supply chain managers are experiencing transportation-related issues.
For companies who are lucky enough to retain their suppliers, they have had to rethink purchasing practices to ensure that their vendors are able to stay in operation and continue selling to them. This concern has prompted major companies to start paying their small vendors faster.
How are B2B Companies Adapting?
Businesses are adopting new strategies to meet customers’ needs and working on building stronger relationships with their clients. One cleaning supply distributor for brands like Purell and Clorox said it is pulling from lessons learned during the 2009 H1N1 and 2016 Zika outbreaks. They are focused on increasing communications with clients, helping customers know what inventory is available and maintaining delivery schedules.
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