Even in sectors with well developed supply chains and firm interdependencies between manufacturers and suppliers, nothing is possible without close cooperation based on mutual trust.
Editorial
Dear Readers, As uncertainty rises in the world market, flexibility is the order of the day. To achieve this, companies are now more than ever dependent on cooperation with suppliers – one of the most important tasks for procurement now and in the future. In our focus topic, we show how you can create financial flexibility by implementing supply chain finance programs and at the same time take the relationship with your suppliers to a new level: Towards close cooperation which is beneficial for both parties.
Another way to optimize working capital is to reduce lead times and thus avoid tying up capital in transit. The new Silk Road offers this possibility – we have investigated the acceptance and potential of the route.
We interviewed Tony Yu, our General Manager in China, about this and other current events affecting the supply relationship between European companies and their suppliers.
We hope you enjoy reading it!
Supply Chain Finance lets all parties benefit
These uncertain times in the global market call for flexibility. But to be able to respond flexibly, it is essential to have large cash reserves available. Companies and their suppliers are coming to a head as they both seek to optimize their working capital. So, what’s the answer? Reverse factoring. Now, it is all about savings, leaner processes, and liquidity. Even in sectors with well developed supply chains and firm interdependencies between manufacturers and suppliers, nothing is possible without close cooperation based on mutual trust.Ultimately, it is about creating high cash reserves and low stock supplies. Investing smartly can work for companies and generate returns, despite the low interest rates.
