For businesses seeking new ways to outperform their peers, every aspect of the business is an opportunity to edge out the competition – including financial health. Having the cash on hand to fund strategic initiatives that translate into competitive advantage can make or break a company’s long-term success. That’s especially true in the current business environment where the pressure is on for companies to navigate transformation, customer expectations, economic volatility and investor scrutiny.
Supply chain finance is one lever companies are pulling to inject a performance boost into the business. By unlocking working capital trapped in the supply chain, companies have access to a debt-free way to fund initiatives that will help them rise above the competition.
In this Perspective, we talk about the ways supply chain finance helps companies improve their competitive position including:
- Navigating changing economic and trade policy conditions without sacrificing strategic initiatives
- Fortifying supplier relationships to ensure suppliers have the capital needed to keep pace with innovation
- Reducing risk across the supply chain
- Improving key financial metrics like cash flow, DPO, corporate debt, interest expense, leverage ratios, EBITDA and enterprise value