Cash/working capital and supply chain financing

 Insight 1

The pandemic set off a cash scramble for companies on numerous fronts.

It also exposed a breadth of policy, process and cash focus inefficiencies. Organizations had to move quickly to ensure they had enough liquidity.

 Insight 2

Supply chain financing (SCF) is the most prevalent vehicle used in the market.

More companies are opting for this approach over other methods such as receivables financing, factoring, loans against receivables and pre-shipment financing.¹

 Insight 3

A broad view of your supply chain is key to mitigating risk.

Businesses that fail to take a broad view of their supply chain may saddle sensitive small- and medium-sized suppliers with limited access to liquidity and heightened risk to their operations.

 Insight 4

Balance drives significant value.

Balancing the supply financing strategy across a portfolio of suppliers can drive significant value in both profit-and-loss statements and cash. It also provides the valuable benefit of optimizing the allocation of risk across the supply chain.


 Insight 5

Liberate working capital from operations to generate cash.

This cash can be used to self-fund multiple strategic priorities.

 Insight 6

Focus on a combination of quick wins and broader strategic initiatives to optimize working capital.

A supply chain finance (SCF) implementation typically takes at least 12 to 16 weeks to get started and another 12 to 18 months to achieve a full run rate and maximum benefits. There are many other actions leading companies can take.


 Insight 7

Having a third-party in place can lead to tangible benefits.

A global supply chain reinvention initiative for an EY client focused on establishing a 1.7-million-square-foot food “manufacturing facility of the future.”


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