4 supply chain finance benefits and why they matter now
Summary
At its core, supply chain finance is reverse factoring, said Miguel Cossio, research director at Gartner. One of the biggest obstacles on the buyer side is that many are working remotely during the pandemic, making it more difficult to implement the technology, Wissink said. A supply chain finance implementation is always perceived as a big change, and people need to collaborate to make it work, Wissink said. In addition, companies have implemented aggressive cash preservation strategies to manage the financial risk caused by dramatic shocks to the economy and uncertainty about the path to recovery, Lekstutis said. Because of recent disruptions, companies are fundamentally rethinking their supply chain structure to drive increased resiliency and lower risk, Lekstutis said.