Financing the Future of Supply Chains
A leading cause of supply chain risk is money. As much as tsunamis, port strikes, and market fluctuations, poor cash flow can cripple a supply chain. When most companies think about supply chain finance, they remain inward-looking and enterprise focused. "How can I extend my payment terms with my suppliers?" remains their predominant question.
But this self-directed gaze neglects a real opportunity to mitigate supply chain risk and strengthen the entire supply chain. Advanced supplier financing programs now exist that use data to inject cash at nearly every major milestone in the supply chain life cycle. This allows buyers and suppliers to have adequate cash on hand to perform reliably.
The infographic below highlights the difference in financial supply chain health between enterprise-focused and supply-chain-focused companies.