Releasing Working Capital Within The Supply Chain

Supply Chain Finance

The current economic downturn is having two major and contradictory impacts on the consumer packaged goods supply chain. First, there is a war for cash in full swing, as individual players in the supply chain take strong action to manage their working capital. Second, there is increasing concern over the stability of supply, with more and more suppliers facing financial difficulties, often exacerbated by the very measures which are being taken by buyers. There is therefore an urgent need for an approach which helps resolve this dilemma, helping companies to manage their own working capital, whilst minimising the risks to continuity of supply. Supply Chain Finance (SCF) is increasingly being seen as a solution to this dilemma.