Companies around the globe are feeling pressure to revise their strategies for managing working capital. As companies increasingly operate their supply chains on a global basis to remain competitive, many seek new ways to manage the flow of funds through the supply chain.
While the physical supply chain is comprised of activities relating to the movement of goods, the financial supply chain describes the activities involved in planning and executing payments between trading partners—an essential function to the financial well-being of any corporation. For every physical movement of goods between supplier and buyer, there exists a financial flow traveling in the opposite direction. Financial supply chain management involves taking a holistic approach to these processes in order to achieve a range of benefits that include improved efficiency and visibility across the supply chain and a more favorable working capital position.
D+H’s Total Treasury can help firms manage their financial supply chains by enabling banks and corporate customers to seamlessly connect with their trading partners on transaction related documents and information. The solution addresses the treasury department’s full range of responsibilities, extending beyond just financing (supply chain finance) to include document management (supply chain services). With Total Treasury’s supply chain finance functionality, corporate treasury benefits from optimized cash flow, enhanced liquidity, increased supply chain competitiveness, and a significant reduction in costs.