Supply Chain Finance – What’s It Worth?
نویسنده
چکیده
Supply Chain Finance (SCF) represents an innovative opportunity to reduce working capital. Its underlying mechanism is reverse factoring making the technique buyerrather than supplier-centric. Implementing SCF is a difficult and time-consuming task that requires top management attention. Yet, it promises significant savings. Our survey results show that, on average, companies reduce working capital by 13% and suppliers reduce working capital by 14%. Three factors differentiate successful implementations of SCF from less successful ones: Choosing the right banking partner, ensuring CEO sponsorship, and involving at least 60% of the supply-base.
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