Too Busy? Try These Tips to (Streamline) Your Supply Chain Finance

Too busy worrying? Trying these tips to streamline your supply chain finance could go a long way in helping you improve your bottom line. One of the very critical, yet often overlooked components of the supply chain is finance. Finance is the lifeblood of any business. Its role in a business with various interconnected loops such as supply chain is all the more prominent.

Supply chain rests on free movement of goods. It is built like a relay race in which goods are transported from one point to another. The essence of running a well-coordinated supply chain machinery is keeping the different connecting points well-oiled. One of the best mediums that facilitate this is finance. Why? Quite naturally, because when the different points of the supply chain are properly financed, the goods don’t get held up at any point. This is a point that a recent Ernst & Young study entitled, "Partnering for Performance — the CFO and the Supply Chain" brings about strikingly. It notes that there is an inseparable bond between well financed supply chains and higher earnings for organizations.

As important as the technologies

This points to the paramountcy of finance to the supply chain. The supply chain may have used the best technologies to put the most efficient tracking systems in place. It may have every bit of information to keep the supply chain up and running. But finance is the real essence of the operation. If for reasons related to finance there is some disruption in a part the chain, it affects the whole system adversely, carrying with it the potential to bring the entire chain to a halt.

Too busy? Try these tips to streamline your supply chain finance

By its very nature, supply chain is prone to a lot of volatility. It runs on coordination of many factors and between several players in the link. One loose link can destabilize the entire system. Let us say a shipment reaches a link in the supply chain. When there is a change in the requirement, requiring the content in the supply to be changed, it leads to delays in delivery. Till that time, the supplier has to bear the cost of the transportation, which leads to severe denting of margins, since the costs will go up.

Been too busy? You could try these tips to streamline your supply chain finance: The solution to this problem is financing the entire supply chain through means that are more or less favorable to everyone concerned. If all the parts of the supply chain are well financed, they will be able to absorb the shocks of such supply chain problems without having to sacrifice their business. This calls for financing at all levels of the supply chain. This is a very sound protection for all the uncertainties of goods and payments.

https://www.gtnexus.com/resources/infographics/financing-future-supply-chains

https://www.linkedin.com/pulse/what-deep-financing-how-does-improve-your-supply-chain-burak-yahsi

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