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Working with industry leading organisations, experts, governments and universities, BCR Publications delivers expertise in factoring, receivables and supply chain finance to a global audience.

BCR has long been a beacon of innovation and excellence in the realm of receivables finance, playing an instrumental role in shaping the industry’s international landscape. Through its comprehensive conferences, insightful publications, and thought leadership, BCR has facilitated crucial dialogues and connections among industry professionals, driving forward the development of receivables finance globally.

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The Impact of the Supply Chain Crisis on Working Capital

10-10-2022 | treasuryXL | ComplexCountries | LinkedIn |

Working capital is always a hot topic – but never more so than now. Depending on how you count, most businesses are facing double, triple or more whammies.

Source

The Impact of the Supply Chain Crisis on Working Capital

Difficulty obtaining supplies, resulting in lost sales, or seasonal goods arriving too late for the season (one participant is in the apparel industry, where this is crucial).
Manufacturing inventories building up, as products cannot be completed or sold due to one or two missing components – but the rest have been bought and paid for.
Supply chain management building extra inventory buffers
Difficulty managing FX hedging programmes, as future cash flows become even harder to predict and forecast
And, of course, this is all happening against an environment of rising interest rates, which increases the cost of holding inventory
Margin pressures, due to increased shipping costs – especially given the increased use of emergency shipments, which come outside the agreed rates
Coupled with inflation and recession risks, there is an increasing concern over distributors’ being left with unsold inventory, with an accompanying credit risk

As always, we had a lively discussion – I encourage you to read the different stories our participants had to tell. They contain lessons for all of us. The main takeaways:

There is increased use of supply chain financing programmes, both supplier financing and factoring. Suppliers are becoming less reluctant to use them, and several participants have extended these programmes to countries and areas where they were not used before.
An increasing trend to use fintech platforms for this, rather than single bank programmes – often for capacity reasons, as well as ease of use.
In many cases, treasury is working with procurement and the suppliers to find a collaborative solution. This can involve paying suppliers early, to help them.
One participant spoke of a failed implementation of supply chain financing – the lesson being that you need to have the right team.
In each case, treasury is working with the business to try to find the right trade off between the cost of holding more inventory, and the cost of missed or late sales.
One participant uses internal factoring to make the best use of cash within the company, before they go to the outside market for funding. This is a cash optimisation tool we often forget.
One participant’s company manages very large, multi-year fixed price contracts, with many suppliers around the world. This is a particularly challenging environment.
Again, while treasury tends to view inventory and working capital as an evil, it can also be a competitive advantage, if you can supply when your competitors cannot.

Managing and funding working capital is one of the biggest challenges we face. In an environment such as today’s, it is an area where treasurers can truly add value to the business.

Contributors:

This report was produced by Monie Lindsey based on a Treasury Peer Call chaired by Damian Glendinning

To access this report:

Access to the full report is available to Premium Subscribers of ComplexCountries. Please log in on the website of ComplexCountries to access the download.
Please contact ComplexCountries to find out about their subscription packages.

Group Treasurers’ Exchange | Designed for Group Treasurers, by Group Treasurers

06-10-2022 | IQPC Exchange | treasuryXL | LinkedIn |

EUROPE’S PREMIER INVITATION-ONLY EVENT FOR GROUP TREASURERS

At the 10^th annual Group Treasurers’ Exchange, 60 Group Treasurers, Directors and Heads of Treasury will be coming to Berlin on November 15-16 to discuss how innovating the treasury function will mitigate risk and bolster profitability.

Designed for Group Treasurers, by Group Treasurers, the GT Exchange Europe 2022 offers a unique and exclusive format specifically tailored to unpack the issues that are most relevant. This invitation-only meeting is exclusively attended by a select group of pre-qualified senior treasurers responsible for creating an efficient and innovative treasury function. Attendees will benefit from an experience packed with networking with likeminded peers navigating the same industry challenges in a relaxed, consultative, and friendly environment.

The Exchange is attended by senior strategic leaders and decision-makers from major Treasury departments across Europe. Every attendee is personally invited and registered to ensure the right level of seniority and relevance to the event’s key themes.

Group Treasurers, Directors and Heads of Treasury can capitalise on a closed-door event with no press, full of one-to-one meetings, intimate breakout sessions, think tanks, roundtable discussions & more!

This innovative two-day event will cover key challenges facing an innovative treasury function, with expert speakers attending from a variety of top companies, including:

Roche
General Mills
C&A
SVP Worldwide
Galeria
Orange
Axpo Group

Topics discussed at the 2022 Exchange include:

Payments, Liquidity Management, Taxation and Regulation
Future of the Treasury Department
Promoting Innovation and Risk
Prioritising ESG Initiatives
Relationship Management
Digitalisation and Financial Efficiency
Cash Forecasting
Cost Elimination and Fraud Prevention
Value Creation Through Liquidity Strategy
Cross-Department Collaboration
New Technologies for the Treasury Department

If you’re a qualifying attendee and want to attend the #GTEU Exchange, request an invitation here

Don’t miss the latest episode of TIS’ Payments Hub Podcast!

06-10-2022 | treasuryXL | TIS | LinkedIn |

Don’t miss the latest episode of TIS’ Payments Hub Podcast! treasuryXL expert Patrick Kunz is featured in this edition. The topic of discussion is: Treasury in Finance; What are the newest trends and how can treasurers prepare?

In this episode, treasury and banking expert Kate Pohl speaks with industry consultant and thought-leader Patrick Kunz about the state of contemporary treasury best practices, technology utilization, and more.

BCR Publishing

We are the leading provider of news, market intelligence, events and training for the global receivables finance industry.

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ARTICLES

The Impact of the Supply Chain Crisis on Working Capital

The Impact of the Supply Chain Crisis on Working Capital

To access this report:

Group Treasurers’ Exchange | Designed for Group Treasurers, by Group Treasurers

EUROPE’S PREMIER INVITATION-ONLY EVENT FOR GROUP TREASURERS

Topics discussed at the 2022 Exchange include:

Don’t miss the latest episode of TIS’ Payments Hub Podcast!

Click here to listen to the complete episode

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