Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How a Buyer Used Dynamic Discounting to Boost Supplier Loyalty
In this episode of The Buyer's Side, Lucas and Luna explore dynamic discounting—a working capital strategy where buyers offer early payment in exchange for a discount, but on a sliding scale tied to how early the payment arrives. They break down a real procurement case from a mid-size manufacturer that used dynamic discounting to improve supplier relationships and shave 2.3 percent off annual procurement costs. Lucas explains the mechanics: a supplier gets paid in 10 days instead of 60, and the buyer earns a 1.5 percent discount that scales down as the payment date approaches. Luna…
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