15%: Have firm plans to enhance SCF practices
41%: Investigating options
31%: No action taken
Source: Aberdeen Group
| Worlds Apart
Many buyers and suppliers are still a long way from agreeing on how they can improve their supply-chain financing. As of last September, these were the top actions each side planned to take in the next 18 months to improve the financing of its supply chain. |
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| Buyers | Suppliers | |||
| 51% — Negotiate price reductions with suppliers for early payment | 67% — Implement a program that enables both streamlined transaction processing and access to financing | |||
| 41% — Implement a scorecard system to track supplier performance | 49% — Find a cheaper financing source | |||
| 40% — Implement new technology for better automation and visibility | 44% — Implement new technology for better automation and visibility | |||
| 39% — Extend payment terms | 37% — Obtain additional financing from a financial institution | |||
| 32% — Implement a program that enables both streamlined transaction processing and access to financing | 26% — Use purchase-order performance milestones to trigger buyer payment or export finance | |||
| Source: Aberdeen Group | ||||
Ahead of the Curve
Some of the techniques employed by companies that are actively managing their supply-chain finance:
- Electronic invoice presentment and payment systems
- Online payment platforms with automated discounting and invoice reconciliation
- Online payment platforms with access to third-party financing
Source: Aberdeen Group
Reader CommentsDisplaying 3 of 3
ANTON MATTLI
May 14, 2007 7:31 PM ET
Integration with ERP systems crucial
Even though several service offerings to improve bring visibility and velocity to Supply Chain Finance have been around … more
Stephen B
Feb 20, 2007 3:13 PM ET
Supply Chain Finance
Bibby Financial services offers a similar product as well as Orbian.
David Sherman
Feb 5, 2007 10:20 AM ET
Why aren't more companies do it?
Interesting article. Who are the competitors for PrimeRevenue? thanks
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