Showing posts with label Supply Chain Finance. Show all posts
Showing posts with label Supply Chain Finance. Show all posts

Monday, November 14, 2011

Supply Chain Finance Part. IV

The potential improvements in the development of CFS are:

    * Improve the traceability of transactions (orders, invoices, making payments, cash) to the sender as the recipient.
    * Avoid litigation and the costs associated with their management.
    * Generate working capital through better management of financial flows. For this, banks need to adapt their offerings to the new needs expressed by client companies.
    * Benefit from the discount offered by suppliers in case of cash payment, without degrading its financial position since fiscal third rule for the acquiring company (reverse factoring)
    * Retain the most important suppliers
    * Increase the capacity to purchase the acquiring company

The other advantage of the SCF:
Long control of the supply chain was seen as a logistical necessity rather than as a real competitive advantage, however, the globalization of the economy no longer allows this way of thinking because it is cost savings to all levels to be able to offer the best prices. Control of financial flows is now the last piece of the savings. Therefore, enterprise customers are now very interested in the ability of their suppliers or customers to integrate into a process of "modernization" of tools related to accounting and finance offers available from financial institutions. Control its cash flow enables a company to offer customers efficient service and achieve economies together. It seems that the implementation of management solutions for financial information is involved, to some extent to meet the needs of business partners and thus contribute to their loyalty. However, in some areas as high technology, supply chain based on key players, specialized suppliers and rare it is imperative to retain.

The CFS will ensure the smooth flow of information related to financial flows and thus contributes to the flexibility of the entire chain by addressing the shortcomings of funding or access to financial information. Continue to operate from the old ways is contrary to the current economy and what it requires companies in terms of efficiency. Thus, it should be put in place systems to access information yesterday fragmented as companies seek to ensure unity became a key factor of success.
In short, it is called today to find solutions that integrate all the information (physical flows, information flows and financial flows) so that they can be exploited best by all participants in the chain supply and their financiers.
It is therefore not surprising that the recent emergence of offers of "Supply Chain Finance officials" within recruitment agencies

Friday, November 11, 2011

Supply Chain Finance Part. III

The implementation of this portal thus has the advantage of reducing costs through paperless transactions, track and archive centrally each exchange and control of customer disputes. This progress is in itself help much appreciated by the companies that allows them to save time previously spent on resolving issues sterile.
The innovation lies in the fact that one third may have financial access to this platform. It is then able to offer (so early) offers funding to the various players in the supply chain (discount ...).
Everyone wins: the financial institution sells its finance offers closer to the needs of its clients, customers more effectively manage their need for working capital (BFR) and supply chain pressures subside.

When asked the 500 largest European companies on working capital financing techniques that seem to grow strongly in the near future (study Demica - December 2006), loans by the banking pool and the financing of the supply chain (reverse factoring) top.

CGA of Societe Generale Group, Eurofactor, IFN (...) are some of the players with offers of "reverse factoring" to their customers. The principle is simple, a financial intermediary pays the bill to the supplier on the day of issue which in return allows the acquiring company to benefit from an extension (the broker earns a margin on this).
It should be noted that in Italy, some companies have created their own company credit and factoring without going through financial institutions.

The CFS is not exactly new, serious consideration is that since the early 2000s leading to innovations both from UPS or DHL (billing management, collection, delivery against payment) that Banks have realized, with some delay, the need to provide their customers with offers to alleviate existing pressures on the financing of the Supply Chain.

Monday, November 7, 2011

Supply Chain Finance Part. II

The sectors concerned are mainly industrial sectors: pharmaceutical companies, automotive and high technology are particularly interested in the subject because they are highly dependent on suppliers irreplaceable.

Search for a win-win solution: Supply Chain Finance is the answer to a tense situation between suppliers and buyers

Friday, November 4, 2011

Supply Chain Finance Part.I

Effectively manage its cash flows are a necessity for the enterprise and supply chain comes from low mode "Finance". Suppliers and buyers, customers and banks are willing to embrace this new trend. Born in the United States and adopted by a U.S. economy again precursor.

"The battle to dominate the market will not be a battle of the enterprises, but supply chains" Professor Hau Lee, Stanford. Historically, the competitive advantages of controlling the supply chain has always been underestimated, companies led a fierce battle on products or services, not on processes. This vision has since been questioned, particularly in a context of economic globalization. After improving the physical flows and information, announces itself with a new phase control of financial flows.