Supply Chain Finance in Growing Demand

By Hawser, Anita | Global Finance, July/August 2009 | Go to article overview

Supply Chain Finance in Growing Demand


Hawser, Anita, Global Finance


Best Supply Chain Finance Providers 2009

The credit crunch has demonstrated which banks are truly committed to developing supply chain finance solutions.

Few market segments within financial services have emerged unscathed from the recent credit crisis, and supply chain financing is no exception. Twelve to 18 months ago banks were eager to talk about their investments Ln technology that enabled them to provide early payment to suppliers based on approved payables from the buyer. Since the credit crisis, however, a number of banks have gone quiet on supply chain as they no longer have the risk appetite or the capital to invest in solutions. The number of banks bidding for supply chain financing deals is estimated to have gone from double to single figures.

However, now more than ever, companies - particularly small and medium-size enterprises (SMJEs) or those that are unable to obtain affordable financing from traditional channels - are in need of supply chain financing. The winners of the Global Finance Best Supply Chain Finance Providers awards are those organizations that stand out as remaining committed to the business and to providing ever more effective and useful solutions for cheir clients.

Supply chain financing is gradually evolving as the products on offer expand from covering payables and receivables to encompass other parts of the supplychain, such as inventory. However, supply chain financing is not just about selling a product. In order to understand the financing needs of both buyers and suppliers, technology is important in terms of gaining greater visibility across the entire order-to-pay process. Some of the key innovations in this space are coming from third parties that are leveraging the latest in webbased technologies to provide buyers and suppliers with a wider range of innovative financing options. While the majority of banks are still focused on providing post-shipment financing, pre -shipment and inventory financing is an area that requires much greater focus, particularly in the current economic climate.

Best Global Supply Chain Finance Bank

HSBC

Ir has been a tumultuous year for most global cash management banks. While affected by the crisis, HSBC still has a relatively strong balance sheet and appears to remain committed to the supply chain financing business. Globally its trade and supply chain finance offerings cover just over 6lt countries and territories, and it claims to have achieved strong supplier uptake in key markets, particularly in Asia-Pacific and, to some extent, the Middle East. It provides an array of electronic platforms tor automating and matching trade documentation including letters of credit, purchase orders and invoices. It has the risk appetite to encompass a broad range of supply chain and trade finance solutions including pre-shipment financing.

Best Global Supply Chain Finance Provider (Non-Bank}

Orbian

Last year's winner retains its crown this year, and as one of the longest-running providers in die non-bank space it remains committed to the business while others that entered the space more recendy have fallen by the wayside due to financial problems of their own. Orbian has provided electronic payables services since the late 1990s. Ic commenced operations as a joint venture between enterprise application software provider SAP and Citi but was later spun out as a separate company. In 2008 Orbian saw its transaction volume increase by just over 20% and supplier funding transactions increase by 1 5% to $4 billion. Orbian gained more than 400 new clients last year, bringing the total number of clients to 2,322. It has more than 30 active buyer programs and more than 2,280 suppliers that are using its platform to actively discount invoices. Orbian operates in 44 countries.

Best Supplier Support & Enrollment

Ariba

Ariba continues to boast the largest supplier network, with more than 180,000 "e-enabled" suppliers across 1 1 5 countries on its supplier network. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Supply Chain Finance in Growing Demand
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.