Services Wanted

Focus on remedies, not faults. – Jack Nicklaus

Once an organization has selected their Supply Chain Finance technology platform and services provider, designed their SCF program and selected the financing provider for their SCF program, there are two critical items that must be accomplished:

1. Achieve the reason for implementing Supply Chain Finance (e.g. reduce costs, reduce working capital, reduce supplier risk, etc.)

2. On-board suppliers

These objectives are supported by the services of the SCF provider which is why it is generally referred to as a “technology enabled service”. I find that many organizations evaluating SCF focus far too much on the technology platform and financing aspects and not nearly enough on the services provided to help them achieve their SCF objectives and to educate and enable their suppliers. Yes the technology and financing are important solution components, but the purpose of SCF isn’t to set up a technology platform connected to financing providers. The purpose is to achieve the objectives of buyers and their suppliers, to reduce cost, capital and risk in the supply chain. That requires services/tools for the Procurement team to help them achieve their objectives and services/tools for suppliers to help them determine how much value they can achieve through SCF and get them enabled onto the technology platform. Without these services and tools, neither the buyer nor their suppliers can achieve the potential benefits of Supply Chain Finance.