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4 Phases of Supply Chain Finance: A Tale of One Company’s Journey

I'm going to remain silent about the names of companies involved, to protect the innocent and guilty, but the story I'm going to tell is of one company's experiences in deploying supply chain finance, a.k.a. supplier finance.

A few months back, we met with a multinational company, a leader in the electronics industry that was an early adopter of supplier finance. Let's call it Company X. It had deployed a supplier finance program globally several years ago, yet it called PrimeRevenue in to talk about our offering. This interest was intriguing, and we initially thought there had to be a jurisdiction issue we need to solve.

It is common for companies to contact PrimeRevenue when they have developed supplier finance programs and have seen little or no progress after several years of implementation. The calls for assistance typically relate to the lack of meaningful working capital objectives and a structured rollout plan. The companies also want to know how we can better on-board their suppliers that have challenges like contracting, price requirement, lien, jurisdiction, and currency issues.

The journey of Company X is a common one, and it is an interesting reflection point in the maturation of the market. Click on the slideshow below to see where this company has been and where it's going.

The Journey to Solid Supply Chain Finance

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2 comments on “4 Phases of Supply Chain Finance: A Tale of One Company’s Journey

  1. SP
    December 10, 2014

    One bank strategy works well instead of having many banks. This reduces many hassles and paperwork in funding.

  2. FLYINGSCOT
    December 10, 2014

    I see many small companies outsourcing functions that benefit from highly speocialized skills (like finaince, HR and legal) that are too expensive to support internally.  This makes great sense especially when the company has diverse compliance requirements. 

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