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Six Trends of Supply Chain Finance
How an organization manages its money is critical. That is nothing new. However, there are trends in procurement influencing how that is done.
This week’s esourcing wiki is an Intro to Supply Chain Finance. The article covers the four partners in supply chain finance – the buyer, the supplier, the technology provider and the finance institution. What is driving this is the globalization of the supply chain and the need for funds to cross borders.
RBS posted an article in June, 2014 titled “Six Trends changing the Face of Supply Chain Finance”.
I found it informative and helpful to understand approaches other organizations are using. Traditionally it has been about the buyer delaying payment and keeping the money on their books as long as possible. Now there has been a trend to help the suppliers find preferred financing and rates, especially if they are strategic to the buyer’s organization.
All of this can get quite complex, involving many financial partners and the paperwork can become overwhelming. Thankfully another trend is the use of technology to support all of this. The result is cost reductions and process efficiency.
How has your procurement team utilized supply chain finance? Was there one aspect that was easier to adopt and got you started?
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