Over the last 5 months, the Procurement Intelligence Unit team (PIU) have been busy talking to leading consultancies, solution providers, banks and big companies about how procurement can mayor impact on working capital.
We learnt about a number of different initiatives and innovations that could help procurement leaders strengthen their companies’ working capital position, however Supply Chain Finance jumped out as the approach the biggest and more sustainable approach.
So what is Supply Chain Finance? Well that’s was one of the biggest challenges we faced, every person we spoke seemed to have a different definition and understanding. That said we feel after much debate that we have come up with a definition that encapsulates the concept in its true form.
‘Supply chain finance is a buyer-led initiative that facilitates favourable financing for the supplier in order to achieve mutual benefits for both trading partners, through the use of a technology platform and a third-party financial institution or otherwise.’
I look forward hearing your thoughts on this definition and how you perceive Supply Chain Finance as model for free up working capital in big business.
If you would like to access the executive summary of the ‘Supply Chain Finance – The Anti-Crunch’ or enquire about access to the full report and membership to the Procurement Intelligence Unit, please click here