Making the business case for supply chain finance

Working capital has traditionally been a zero-sum game in the supply chain, as increased DPO for buyers incurs extended DSO for sellers, often causing friction in the buyer-seller relationship.

With the introduction of supply chain finance (SCF) tools such as reverse factoring and dynamic discounting, organizations can maintain prompt payments to their suppliers without adversely impacting their own cash flow, and can even use SCF to leverage their own free cash to generate risk-free returns.

Integrating treasury management with SCF solutions enables organizations to implement straightforward programs that support their supplier communities, as well as providing tangible benefits for optimizing their own working capital.

This ebook outlines some of the key issues for organizations who may be considering implementing SCF, or are simply looking for details of how an SCF program could benefit their organization. Topics include:

  • Key benefits – both to vendors and suppliers – of SCF programs
  • Outlines of programs available
  • How supply chain finance and treasury management can work together