Cash & Liquidity Management
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ING Guide to Financial Supply Chain Optimisation (Part 2)

Creating Opportunities for Competitive Advantage

Section Four:

Supply Chain Finance

Introduction

Gregory Cronie, Head Sales, Payments and Cash Management, ING

In the last edition of TMI, we explored the elements, which comprise the financial supply chain. We looked in some detail at the order-to-cash (receivables) and purchase-to-pay (payables) processes and how these can be optimised to create internal efficiencies, reducing the number of cash days for a company and therefore working capital requirements.

The benefits of automating internal processes are not restricted to internal efficiencies. Reducing the working capital requirement enhances the balance sheet and reduces the need for short term borrowing, improving financial ratios and therefore increasing the ability to obtain financing for more strategic purposes.