The Financial Supply Chain refers to the end-to-end trade processes and information that drive a company’s cash, accounts, and working capital.
From a buyer’s perspective, this involves the full procurement-to-payment process. For the seller, it is the order-to-cash cycle. In both cases, the goal of the Financial Supply Chain is to optimize:
- Accounts payable and receivable
- Cash management
- Working capital
- Transaction costs
But unlike the physical supply chain, which has seen improvements ranging from containerization to fulfillment management, there remain significant performance gaps in the Financial Supply Chain which contribute significantly to the trapped value identified above. These gaps are the result of the:
- Time required to create, transfer and process paper documentation
- Cost and errors associated with manual creation and reconciliation of documentation
- Lack of transparency in inventory and cash positions when goods are in the supply chain
- Disputes arising from inaccurate or missing data
- Fragmented point solutions that do not address the complete end-to-end processes of the trade cycle
AppliedTechonomics helps organizations achieve optimal performance through supply chain mastery by combining our global industry expertise with specialized systems integration techniques.
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