The big tier ones (Bosch, Continental, etc) insist on payment up front specifically to avoid this. It's the smaller vendors that don't have leverage to set payment terms who get screwed.
One tactic I've seen OEMs use is to buy for multiple products and stop payments for one as a test. If the vendor complains, they lose all the unrelated business (possibly including clawbacks!) and the OEM moves to the second source. This can kill the supplier.
The winning move is not to play.
As a small player in the services game (data consulting) the only way to do it is to have good relationships with the people paying the bills. Even with good agreements, you still need the client to be on your side.
If no one plays then nothing will be made.
Absolutely brutal. Wow.
One big secret in economics is that essentially the whole world is demand constrained. There's exceptions, but they're few and far between. And in all of economics you will not find a solution to that anywhere, hell they don't even explain this. Obviously the supply/demand curve is in reality not linear: at low prices it goes entirely horizontal and constrained below physical needs it goes entirely vertical. Obviously, no linear model can do this. There's no real point in doing more of anything than we are doing now. Think of it like this: if in Paris double as much bread was made tomorrow, and sold at any price, there would not be even a minimal rise in bread consumption. We have enough. Essentially all of it would be thrown away. Now replace bread by just about anything, and you'd see the same problem. So "relationships" are what gets business, or as you might call it "selling demand". And it's very easy for buyers to abuse the system.