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Longer Chains, Lower Costs

To create a seamless supply chain, every link must feel like it's winning

By Richard Gamble | Updated on June 01, 2004

As the financial supply chain for The Stanley Works began to grow with the proliferation of offshore vendors, Craig Douglas, treasurer of the New Britain, Conn.-based tool manufacturer, thought he had one option if his company was to reduce its working capital: push the additional costs required by a longer chain onto the various supplier links. That was before he discovered a Web-based supply chain technology tool from Citibank. “Companies in the middle can’t bear the cost of carrying a lot of working capital, but we don’t want to increase the cost to the supply chain,” Douglas says. “Citibank’s system lets us push off some of the costs onto the vendors, but in a way that allows them to get reasonably priced financing so the costs are not that great.”

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