Tuesday, 16 December 2014

The results of a new survey have shown Axis for Business that one in five small business have faced ‘supply chain bullying’ in the last two years.

A Symbiotic Relationship

As an energy and telecoms supplier that strives to deliver value for money to small businesses in the UK, Axis for Business understands the symbiotic relationship many SMEs have with larger firms.

For many small businesses, a significant portion of their revenue stream relies on the trade they receive from supplying their larger equivalents. That’s why it’s so worrying that according to Smallbusiness.co.uk, nearly a fifth of SMEs feel they have been subjected to one form of ‘supply chain bullying’ or another in the past two years.

17% of Small Businesses Face ‘Supply Chain Bullying.’

In a poll of 2,500 members of the Federation of Small Businesses (FSB), 17% (almost one in five) admitted to facing pressure from a larger company that they supply.

Furthermore, the survey found that this goes beyond pay to stay, where larger companies’ demands a supplier pays a fee to continue to do business. It indicated a serious deterioration of payment practises, with issues such as exceeding payment agreements, prompt payment discounts and excessively long payment terms highlighted by SMEs.

“Small Businesses Are Fast Approaching Breaking Point”

Speaking out on the results of the survey, FSB’s national chairman, John Allan, said: “The government has indicated that they are prepared to do more to improve the culture of payment practices in the UK and they are right to do so.

“The sense I get from talking to our members is that small businesses are fast approaching the breaking point. They are no longer prepared to put up with these sharp practices. Brands that think they can continue to squeeze their suppliers with impunity may get a nasty shock when what they are doing comes to the attention of their consumers.”

Protect Your Small Business from Supply Chain Bullying

If you don’t want to reach that breaking point, ensure you protect your small business from the prospect of ‘supply chain bullying.’ That way, you’ll be able to ensure you are able to generate the capital you need to stay in the red.