Financial supply chain management: the time is now

Copying and distributing are prohibited without permission of the publisher

21 April 2010

While recent events have driven the take-up of financial supply chain management solutions, conditions remain ripe for implementing a holistic approach to procurement and financing, say Jonathan Richman and Alexander Mutter of Deutsche Bank’s Global Transaction Banking.

Late-2008 and 2009 certainly saw an increased take-up of financial supply chain solutions from corporates. However, this was a trend that was developing for some time before the financial crisis struck and, despite the return of some degree of normality, demand is not subsiding. The more recent spike is a result of the past 18 months drawing attention to issues surrounding liquidity and risk when trading on open account terms – meaning that corporates are now more aware of the potential pitfalls.

Of course, one factor contributing to an increased interest in financial supply chain (FSC) management during the economic turmoil was a need for liquidity among many corporates. As credit markets contracted, difficulties in accessing conventional sources led to a surge in demand for solutions that can unlock cash trapped in the supply chain. Indeed, more generally, trade-oriented financings proved their resilience as corporates sought all sources of liquidity...

You must be logged in to view this page. If you are already a registered user please log in. Alternatively, you can request a free trial or subscribe.

Already have an account?

Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.

Free trial

Taking a free trial will give you access to the latest news and analysis for two days (excluding some surveys and articles). Start your free trial today.

Upcoming Events