Trans-Pacific Partnership Continues to Progress

One of the big things we’re watching in the news is the progress of the Trans-Pacific Partnership (TPP) agreement, a huge trade deal between the US and several Asian countries. If this free trade agreement passes, huge opportunities will open up for many companies. For instance. Nike has said that they will be able to expand their manufacturing and engineering jobs by 10,000 if the deal passes. Not only that, but they will be able to expand the job opportunities for their supply chain by 40,000 positions. The TPP is an agreement that prioritizes the US economy and helps it enter foreign markets, while also setting ground rules for exports, intellectual property, and other trade issues. We believe agreements that encourage free and fair trade allow Nike to do what we do best: innovate, expand our business and drive economic growth, said Mark Parker, Nike Chief Executive Officer. Indeed, today globalization no longer means finding low-cost countries for sourcing, but the opportunity for interregional growth in Asia Pacific’s emerging regional markets such as South East Asia. These flows are creating new trade channels in the region where they did not exist before. As supply chains continue to fragment and proliferate globally, so does the need to finance them. New suppliers and customers in Asian markets may be highly efficient in a manufacturing cost or profitability sense, but they may lack the working capital capacity to afford the credit and payment term terms of their counterparts. The greater pressure on working capital is fueled further by increasing lending restrictions putting a strain on companies. Therefore, optimizing working capital has become a key priority for many corporations engaged in global trade and efficient management of the cash-to-cash cycle is a key component of this effort. Corporates can generate considerable savings by re-engineering their receivables and payables process. Increasingly, treasurers and their trading partners are proactively seeking working capital finance solutions that enable them to speed up the conversion of receivables and payables into cash, in order to minimize operational costs, capture critical information and reduce risk in their supply chain. With multinational buying corporations such as Wesfarmers, Pacific Brands and IPL as well as approximately 1000 suppliers with access to competitively priced funding in their local currencies on our platform in Asia Pacific, PrimeRevenue has one of the strongest presences in supply chain finance in the region. For more information about PrimeRevenue and how it can increase the efficiency of your global supply chain, contact us today.