Gartner Research

CPOs and Supply Management Leaders Drive Value Through Supply Chain Finance

Published: 24 August 2015

ID: G00275324

Analyst(s): Richard Adams

Summary

The extension of supplier payment terms often can degrade supplier relationships, increase supplier risk and potentially harm the corporate brand. Leaders can address these issues while improving cash flow through the use of supply chain finance.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • CFOs are seeking to maximize cash flow, and this puts pressure on CPOs to extend supplier payment terms, harming supplier relationships that are critical for growth and profitability
  • Brand owners are placing increasing importance on innovation and cost management, requiring supply management leaders to work with finance to create viable SCF programs that balance brand owner and supplier needs
  • The deployment of SCF programs that address a high percentage of spend often turn brand owners into customers of choice, allowing CSCOs to improve financial performance and support growth

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