collaboration
Tangible benefits for
CPOs and CFOs
Integration will lead to collaborative
financial supply chain solutions
Overcoming the challenges presented by a
tough economic climate and capitalising on
emerging opportunities depends on close
partnerships between the procurement and
finance functions. In turn, the benefits of
such partnership can be leveraged by the
implementation of value-added financial
supply chain (FSC) solutions.
Deutsche Bank understands how
integration throughout the corporate supply
chain can lead to tangible benefits.
Operational advantages – such as
enhanced visibility over company cash-flow
and profitability positions – are the first of such
benefits. Second, FSC solutions can provide
alternative sources of working capital funding.
Third, they can be implemented globally.
This is an advantage in today’s highly
interconnected world – particularly from a
procurement perspective. Finally, they can be
extended to a corporation’s suppliers – thereby
helping to improve stability throughout the
end-to-end supply chain. Indeed, this latter
point is proving to be the main driver for many
corporate CFOs and CPOs when assessing
the benefits of FSC programmes.
Deutsche Bank has worked with a US
home appliance manufacturer that is a case
in point, having implemented a FSC solution
that spanned Italy, Poland, Slovakia and
France which aimed to improve payment
terms, generate cash for reinvestment and
strengthen the supply chain. This solution was
then extended to the company’s suppliers
and has led to improved working capital and
cash flow for the manufacturer and – among
other benefits – early visibility with regards to
attractive margins for its suppliers.
As current market challenges show clear
signs of easing, FSC solutions are likely to
become important to commercial success.
With this in mind, CPOs and CFOs – and
indeed their banking partners – should explore
the ways in which FSC solutions may be
leveraged to the benefit of their organisations,
especially against a backdrop of constrained
liquidity and global economic uncertainty.
17
Alexander Mutter is director of
trade & cash solutions advisory
for EMEA, global transaction
banking at Deutsche Bank
March/April 2013
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