Delve into this report from industry experts Procurement Leaders and you’ll find out why you need a working capital strategy that adds value to the whole supply chain, not just your top 50 suppliers.
Time is money, so the cliché goes. But in the context of modern supply chains we should finesse that to “timing is money”. The gap between when cash is received and when cash is dispersed is the factor that determines how much money an organisation has at its disposal at any moment in time – or, indeed, whether it needs additional financial resources.
“Working capital management strategies are equally important for the suppliers to large corporations,”
The physical supply chain is often a beautifully orchestrated stream of products being carried through super-efficient manufacturing processes and Just In Time logistics. But the financial supply chain – the flow of money going in the opposite direction – is often much less coordinated and subject to inadvertent blockages and even deliberate delays, adding unnecessary costs and increasing sustainability risks.