Three Treasury Strategies for Building a Resilient Supplier Network

Reflecting on the findings of this year’s Supplier Survey, Peddy Hashemi explains why today’s suppliers are prioritising stability and security over growth, how they can harness AI effectively, and why supply chain resilience benefits everyone.

Today’s economic climate is riddled with uncertainties – and as the latest research by SAP Taulia reveals, suppliers are under more pressure than ever before.

“Interest rate shifts have significantly increased the cost of borrowing, making it more expensive to finance expansion or invest in growth,” says Peddy Hashemi, Managing Director, Global Head of Customer Success at SAP Taulia. “At the same time, persistent inflation and cost-of-living pressures are squeezing both consumers and businesses.”

Given today’s high borrowing costs and unpredictable demand, stability and cash resilience matter more than rapid expansion. So instead of aggressively pursuing growth, many organisations are working to protect their margins and strengthen their balance sheets. Indeed, SAP Taulia’s latest Supplier Survey found that 46% of suppliers identified growth as a top focus, down from 53% in 2024/25.

“For many companies, the priority is simply ensuring they have enough financial flexibility to navigate ongoing volatility,” Hashemi notes.

Late payments are on the rise

The Supplier Survey also revealed that late payments are once again on the rise, with 55% of suppliers reporting late payments, up from 51% last year. Meanwhile, only 37% of suppliers are being paid on time, down from 42% in 2024/25.

Delays due to administrative inefficiencies are nothing new. But with rising costs putting more pressure on cash flow, many businesses are holding onto their cash for longer. In some cases, larger firms are deliberately extending their payment cycles as part of their cash flow management strategy – making it harder than ever for suppliers to make ends meet.

“For suppliers, particularly SMEs, late payments can create serious cash flow challenges,” says Hashemi. “They still need to cover wages and operational costs, even if invoices remain unpaid. This can force them to take on expensive short-term financing and delay their own payments.

“In extreme cases, persistent late payments can threaten the financial stability of otherwise healthy businesses.”

Suppliers are becoming more proactive

It’s not all bad news. As the Supplier Survey report points out, suppliers aren’t just sitting around waiting for buyers to pay them – instead, they are taking control of their own destinies.

Traditionally, suppliers would either wait 30, 60, or even 90 days to be paid on the due date of an invoice. Alternatively, they would speed up payment by factoring their receivables, which tends to be an expensive option. But early payment solutions have changed this dynamic, allowing suppliers to access funds as soon as they need them.

Early payments enable suppliers to proactively manage their cash flows, with greater flexibility and control. They can choose when to access liquidity based on their own needs, rather than depending on their customers’ payment timelines. As Hashemi points out, “This allows them to bridge the cash flow gap between delivering goods or services and receiving payment.”

Increasingly, suppliers are taking advantage of this opportunity. According to the survey, 66% of suppliers are interested in taking early payments – a five-year high.

Benefits of supply chain resilience

For buyers, meanwhile, it’s important to recognise that supply chain resilience benefits everyone.

“Buyers naturally want to optimise their own working capital – but if suppliers are under financial strain, this can disrupt operations and create risk across the supply chain,” says Hashemi.

To address these risks, he explains, buyers need to communicate openly with suppliers and understand which partners may be more vulnerable to cash flow pressures. By doing so, they will be better placed to adopt solutions that support both sides of the equation.

“The goal should be a more collaborative approach to liquidity management, where both buyers and suppliers have the flexibility to manage their cash positions effectively,” Hashemi says.

AI: moving from hype to reality

This year’s survey also highlighted the growing focus on AI, with 44% of suppliers saying AI is top of mind, up from 38% a year ago.

But there’s a notable gap between interest and adoption, as highlighted in our recent report, How AI is Reshaping Risk, Resilience and the Human Role. The report found that while 82% of procurement leaders are eager to adopt AI, only 35% are prioritising procurement for AI investment.

It’s clear that AI has much to offer buyers and suppliers alike. “For one thing, it can help to automate invoice processing and identify payment risks,” says Hashemi. “AI can support more accurate cash flow forecasting and flag potential late payments before they become a problem. AI also allows the analysis of financial data to make better decisions.”

But moving from hype to real impact requires strong data foundations. AI systems are only as effective as the data they’re built on – so in order to benefit, companies need clean and accessible financial data. AI systems also need to integrate smoothly with existing finance systems so that insights can be acted on in real time.

As Hashemi concludes, “Ultimately, the businesses that will benefit most from AI are those that treat it as part of a broader digital transformation.”

Find out more in our webinar: The AI Reality Check

The gap between AI adoption and growth will be explored in more detail in a webinar on Thursday, 26^th March, ‘The AI Reality Check: Funding Growth and Managing Supplier Risk in an Uncertain Market.’

During the webinar, Peddy Hashemi is joined by experts from SAP, PwC, and Applied Materials. Together, they discuss why AI can only deliver real value if organisations have the right data infrastructure in place, why businesses need a liquidity toolkit, and why waiting until cash flow becomes a problem is too late.

And as the cash flow gap across supply chains continues to widen, the panel will also explore why addressing this gap is becoming an important priority for buyers who want to maintain stable, resilient supply chains.

Register for the webinar