Top tools in managing a growing Supply Chain

Selecting the Right Suppliers Selecting the right partners came top for our participants. All had formal supplier qualification processes in place with a strong focus on risk mitigation and for the retailers with suppliers in the Far East, naturally managing corporate reputation risks were high on the agenda. All companies carried out financial health checks
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How much is your Supply Chain really paying for Finance?

The case for a supplier to take supply chain finance is usually pretty clear, a new, flexible form of finance at a cheaper cost. The question we get asked most often is ‘what is in it for the buyer?’ Coming from a big business background , I have to admit to being totally naive as
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Choke Points: The Domino Effect in the Supply Chain

We considered the balance sheet accounts that changed when a business experienced sales growth and uncovered the ‘Growth Paradox’. Growth consumes more cash than it generates and needs to be funded with a supply of cash. Or put another way; no cash, no growth! What do businesses do and what are their options for supplying
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How Sales Growth Affects Cashflow

Is rapid sales growth good news for businesses? Rapid sales growth can be a mixed blessing. It creates the potential for greater profit, but requires more cash to finance the larger volumes.  When sales grow, the impact on the balance sheet is considerable, specifically when you look at inventory and accounts receivable. These trading asset
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How does supply chain finance differ from invoice discounting and factoring?

Supply chain finance is a new way of providing liquidity to businesses. But what is it and why do it? How is it different from the more traditional approaches of factoring and invoice discounting? To access working capital finance, businesses have traditionally used short-term trading assets such as stock or trade receivables as security. The
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Tools for Supply Chain Finance disrupters

So much of the press around supply chain finance recently has focussed on the rights and wrongs of powerful buyers such as Tesco and Carillion using Supply Chain Finance to soften the blow of a forced extension to their payment terms and it got us wondering where this notion of a suppliers right to receive
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Supply Chain Finance

Supply Chain Finance constitutes an arrangement between a buyer, a supplier, and a financial intermediary where the credit standing of the buyer is leveraged to improve the working capital position of a supplier. Typically, such arrangements involve a large, financially strong company that is supplied by several SMEs and innovative start-ups, and a financial intermediary
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Banks work to define common standards for supply chain finance

With the market for supply chain finance schemes set for explosive further growth, Europe’s largest transaction banks are coming together to define common terminology as they look to expand their range of services and compete for cross-border business. Recent research from Demica cited supply chain finance as the ‘must have’ accessory for transaction banks, revealing average
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