WebsiteGear Logo Log In
New User? Sign Up
About | Contact | FAQ
  Home News Web Hosting Domain Name Industry Thursday, March 22, 2018 
Add Press Release News | News Feeds Feeds | Email This News Email

Funding a Globalised Supply Chain - A study of current and future corporate supply chain funding behaviours
Tuesday, March 13, 2018

Funding a Globalised Supply Chain - A study of current and future corporate supply chain funding behaviours

NEW YORK, March 13, 2018 /PRNewswire/ -- The World Trade Organisation (WTO) has forecast that global trade volume is set to increase by 2.4% in 2017i. This is up from 1.3% growth in 2016 and all-round weak trade growth since the global financial crisis. Despite the expected increase in world trade volume for 2017 it continues to be below predicted global gross domestic product (GDP) growth of around 3%ii.

Read the full report:

While overall trade volume is down when compared to historical trends, supply chains nevertheless continue to lengthen and increase in complexity with increasing numbers of suppliers and transactions. The developing complexity of supply chains for the world's largest corporates, as well as regulatory changes and cost of capital pressures have all contributed to the rise in importance of efficient supply chain funding and with it the rise in potential revenue pools.

Traditionally, management of the supply chain has been product focussed - sourcing, manufacturing and delivering. Recently, very large businesses have begun using their supply chain as a source of inexpensive capital, taking the focus away from product and making it firmly about funding.

Funding, or access to funding, has always been a top priority for suppliers who are generally the smaller counterparty to the buyer. Having a functional and efficient supply chain in place, one in which suppliers are kept front of mind ensures long term resiliency for both parties.

Amid geopolitical and economic turbulence, a resilient supply chain and the stable funding of it is of vital concern for global corporates. When a supplier goes out of business due to lack of liquidity or there be a delay in production or shipping of materials due to changing political legislation or cross border regulations, consequences for the end buyer are very real and result in considerable impacts on the business.

Macro factors such as the potential of US inspired trade wars and barriers and the dismemberment of the European Union are the two chief risk issues facing global corporates in regard to their supply chain. These issues are of far more importance to global treasurers than the cost of funding, physical stock security or counter-party exposures.

Technology has also played a large part in the development of the supply chain. As global sourcing patterns continue their drastic change and become increasingly concentrated in emerging markets, technological developments have had to keep up with the ever-extending geographical supply chains of major importing nations.

While once the domain of large domestic and international banks, fintechs have recently entered the market with their tell-tale agility and focus on operational and technology enabled solutions. Simplified on-boarding and implementation as well as improved interfaces have worked to secure fintechs a rapidly growing place at the supply chain table.

The role of financiers in funding today's supply chain lies in developing strategies that benefit the buyer/supplier relationship and enable both to ultimately sell more and hence grow together. The question is how do financiers go beyond their traditional role and what areas are their corporate clients most focussed on?

Read the full report:

About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.

Contact Clare:
US: (339)-368-6001
Intl: +1 339-368-6001

View original content:

SOURCE Reportlinker

Email This News Email | Submit To Slashdot Slashdot | Submit To Digg | Submit To | News Feeds Feeds

Nav SDL and Nuance to Develop Solutions for Machine Translation of Voice and Video | Mar 22, 2018
Nav One-third of businesses have leaked sensitive information to cyber thieves | Mar 22, 2018
Nav SpotX Doubles Down on Digital Video Advertising Safety, Granted Renewal on All Trustworthy Accountability Group (TAG) Certifications | Mar 22, 2018
Nav Crypto Collectible "CryptoFighters" Partners with WAX Tokens and OPSkins Marketplace | Mar 22, 2018
Nav Constant Contact Announces Annual Customer All Star Awards | Mar 22, 2018
Nav Destini Launches Dynamic Product Availability Short-Links Service With Real-Time Media Conversion Tracking | Mar 22, 2018
Nav Wes Gillis Joins VUE Software as Practice Leader of Health and Medicare | Mar 22, 2018
Nav GDC 2018: uSens Opens Beta Program to uSensAR, the Smartphone Augmented Reality Engine, to Help Game Developers Reach Two Billion Android phones | Mar 21, 2018
Nav Swirlds Welcomes Patrick Harding as Senior Vice President of Products | Mar 21, 2018
Nav General Dynamics at AUSA Global Force 2018: Modernizing and Equipping the Army for Today and Tomorrow | Mar 21, 2018

Submit News | View More News View More News