DEMAND PLANNING AND THE ROLE OF FINANCIAL TRANSPARENCY IN SUPPLIER RELATIONSHIPS: INSIGHTS FROM TAX AND CORPORATE FINANCE PERSPECTIVES

This thesis explores the role of financial transparency in supplier relationships and its effect on the effectiveness of demand planning in global supply chains. In today’s world, which is marked by volatility, disruptions, and information asymmetries, financial transparency plays a pivotal role in building trust, promoting collaboration, and supporting strategic alignment. In addition to this, this research also takes into consideration the part that various tax laws and corporate finance strategies significantly shape the nature and degree of financial transparency between the buyer and supplier. This study employed a qualitative research method by using semi-structured interviews with 10 professionals from the supply chain, procurement, finance, and tax domains across different industries. To analyze the responses, the thematic analysis was used to identify specific themes and explore them in detail; in fact, 4 main themes were identified with the help of thematic analysis, which are: financial transparency as a strategic tool, trust and collaboration in supplier relationships, the influence of tax and corporate finance considerations, and the role of risk management and crisis preparedness. According to the results, financial openness has a substantial effect, even though indirectly, on the effectiveness of demand planning since it helps to strengthen the supplier relationships and build solid trust and collaboration between the parties. On the other hand, financial opacity actually causes mistrust and doubts, makes negotiations difficult, and brings instability into relationships. Moreover, it has been found that financial transparency is substantially influenced by the corporate governance structures and tax regimes, by either promoting transparency or constraining it.