Deep-Tier Financing: What, how, why and implications for sustainability

Deep-Tier Financing: What, how, why and implications for sustainability

As supply chains grow more complex and global, supply chain management has recognized the significance of looking beyond the first tier of suppliers. The White Paper explores Deep Tier Financing, a strategic tool empowering anchor buyers to effectively manage their upstream suppliers. By providing financial support and incentives to suppliers further up the chain, Deep Tier Financing aims to ensure a robust and sustainable supply chain ecosystem. The paper introduces the concept of the Nexus Supplier and addresses critical sustainability issues in multi-tier supply chain management. It examines the adoption of Supply Chain Finance beyond the traditional first-tier, presenting two models: the invoice-focused model and the product-focused model. The white paper concludes with a real-life case study of the AgOS Deep Tier Financing solution, showcasing practical applications and positive outcomes in enhancing supply chain stability and resilience.