London, 22 September, 2010 – A new report from Aite Group identifies the best practices of a successful supply chain finance program. The report, based on an online survey of more than 100 European practitioners of corporate finance, was conducted by Aite Group between the months of June and August 2010. The report also sheds light on the effectiveness of supply chain finance programs.
The objective of a supply chain finance (SCF) program is to provide corporations with visibility and resolution of discrepancies in financial supply chain events, from source to payment and from customer order to cash. They also enable access to liquidity while mitigating risk, and unlock working capital by allowing suppliers to sell credit term invoices. As the value of supply chain finance programs becomes increasingly evident to corporate treasurers and their procurement office peers, interest is shifting from how to define SCF is toward how to best implement SCF programs. There is currently little documentation on how to best execute effective SCF programs; initiatives are still performed on a case-by-case basis, and successful experiences, considered a competitive advantage, are not publicized.
“The need to use supply chain finance programs has become apparent in the aftermath of the financial crisis,” says Enrico Camerinelli, senior analyst with Aite Group and author of this report. “Unfortunately for both corporations and financial institutions, little information has been available regarding the best practices of implementing these programs. Aite Group’s survey analysis provides a set of critical factors for corporations and financial institutions seeking to successfully plan, implement, and execute a supply chain finance program.”
This 34-page Impact Report contains seven figures and three tables. Clients of Aite Group's Wholesale Banking service can download the report.