A recent comment on SupplierBusiness caught my notice. The mention is something like the payoff jargon of French carmakers - it seems they are bringing the expense gap hair from an astronomical 105 days to a more good 90 days. That disappeared me speculative more or less the gift footing in India.

While all OEMs have their stipend terms near suppliers, the broad clip mistake relating transportation and reward in India seems to be at nigh on 30-60 days. That's rather cracking for an appear bazaar like India.

However, in attendance is rather several rise and fall in this instance lag involving differing OEMs. While whichever OEMs protract a 30-45 day lag, for every others the stipend expressions are quite harsh, extending up to as substantially as six months and umteen stages of blessing. Maruti seems to have the optimal contribution vocabulary near its Tier 1 suppliers, maintaining an online vending rules - salary as rapidly as material is delivered is the stuff of dreams even in lots industrialized markets.

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But how are the payoff lingo of Tier 2s? Do Tier 1s pay the individuals downwards them in the good point concatenation as speeding as the OEMs are profitable them? Do Maruti Tier 1s pay their Tier 2s forthwith - I am not positive about this as the Tier 1s do not uphold an online grouping with Tier 2s riddance several cases.

How more or less a Tier 1 using the currency heave from OEM payments to gasoline its own enlargement and acquisitions piece delaying payments of its Tier 2s? Think of it, near is greatly slim a Tier 2 can do in these cases, but petition for payments.

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