The Relationship Value of Dynamic Discounts

The Importance of Strong Vendor Relationships

Strong vendor partnerships are a critical component to business success, particularly in industries where frequent and regular delivery of inventory is needed to sustain optimal operations, such as retail and restaurant environments. Buyers and sellers must have mutual respect and confidence in each other that foods will be received and paid for in a consistent, timely manner.

Dynamic discounting enables vendors to mitigate the payment uncertainty they traditionally must deal with – when will it come, and how much will it be? Now they can more accurately forecast payment schedules and improve cash flow. This helps ensure for buyers that the vendors they are working with can remain strong and financially stable, as well as solidifies the vendor’s confidence in their buyers’ ability to meet payment terms. It can be difficult and expensive for suppliers to secure credit, so the dynamic discounting approach allows them to collaborate with their buyers in a win-win arrangement: reduces prices for the buyer, reduces the cost of borrowing for the vendor, and overall reduces the cost of doing business for both.

Powered by IBM’s FileNet and Datacap technologies, our user-friendly applications help to accurately forecast payment schedules and improve cash flow, as well as maintain strong vendor relationships.