• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Supply-Chain Financing for U.S. Mid Market Will Benefit Economy
ANALYSIS

Supply-Chain Financing for U.S. Mid Market Will Benefit Economy

February 1, 2021
Dan Ambrico, SCB Contributor

The past year has seen a startling number of high-profile bankruptcies, including powerhouse brands like Hertz Global Holdings Inc., J.Crew Group Inc. and Gold's Gym International Inc. But the biggest blow may have been to the more than 200,000 U.S.-based mid-market companies that are essential to America’s economic success. Many of them temporarily shut down operations or closed altogether. The ones that survived borrowed at the highest rates in history and hoarded cash to mitigate the drawn-out repercussions of the COVID-19 pandemic. 

As we continue to work toward economic recovery, it’s imperative to expand access to supply-chain finance and revenue management programs to these mid-market corporations — and to thoughtfully incorporate the long tail of their suppliers, too.

To make this happen and improve stability throughout supply chains, we have to rethink these programs in three key ways. 

Upgraded supplier experience. Supply-chain finance programs need to focus on the entire supplier experience. Suppliers have been struggling with cash flow and need cash certainty. Marketplace bidding models, common in many supply-chain finance programs, lead to suppliers being uncertain as to when or if they can collect on early payment. A platform with stable fixed price solutions is more reliable and leads to an improved supplier experience. 

In addition, suppliers want a supply-chain financing platform that lets them finance receivables outside of participating clients. Ultimately, programs should be easy for suppliers to enroll, with no liens, extensive bank reviews or difficult technology integrations to ensure maximum participation.

Transparent technology. Supply-chain finance solutions need to become more tech focused. Suppliers should be provided with a secure, intuitive platform where they can easily access their money and track the progress of their receivables in real-time with total transparency. Businesses that have access to on-demand credit information about their suppliers and reliable cash flow can continue to thrive in challenging times.

Long-tail liquidity. Most programs focus only on the most profitable or largest 20% of suppliers, ignoring most of the long tail, even though they are the businesses most likely in need of liquidity. Ensuring all suppliers have access to supply-chain finance programs is vital to maintaining the resiliency of your entire supply chain. If any supplier goes out of business or is having production issues due to cash flow it sets the stage for an inconvenient, difficult and expensive proposition to replace them with all but certain disruptions to the supply chain. 

America’s finance chiefs are increasingly optimistic in their outlooks for the economy — and the finances of their own firms, according to a recent StrategicCFO Confidence Index survey. They predict a strong rebound from the recession over the next 12 months. 

Outlook 

By prioritizing expansion of supply-chain finance and revenue management programs to mid-market and long-tail suppliers, we can ensure greater stability amidst prolonged economic recovery.

Dan Ambrico is CEO of LSQ.

    RELATED CONTENT

    RELATED VIDEOS

    Supply Chain Finance & Revenue Management
    Dan Ambrico, SCB Contributor

    Supply-Chain Financing for U.S. Mid Market Will Benefit Economy

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Popular Stories

    • AN ARRAY OF MEDICAL DEVICES LAID OUT ON A GREEN BACKGROUND

      Why the Medical-Device Industry Is Embracing Contract Manufacturing

      Sourcing/Procurement/SRM
    • A TOY TRUCK CARRIES A GIANT BOX WITH A RED RIBBON IN A BOW

      Three Trends to Watch During Peak Season 2023

      Apparel
    • A MANUFACTURING PLANT AT DUSK OR DAWN REFLECTED IN WATER

      Uncertainty is the New Normal

      Data Management (Big Data/IoT/Blockchain)
    • On Demand Webinar_SAP.png

      Optimize your Logistics Pinch Points to Build a Risk Resilient & Sustainable Supply Chain

      Webinars
    • A GIANT CONTAINER VESSEL SPORTING THE LETTERING OF YANG MING PLIES THE SEAS

      Yang Ming Accused of Profiteering During Pandemic by Bed Bath & Beyond

      Ocean Transportation

    Digital Edition

    Scb august 2023 lg

    2023 100 Great Supply Chain Partners

    VIEW THE LATEST ISSUE

    Case Studies

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

    • Convenience Store Client Maximizes Profit and Improves Customer Service

    • A Digitally Native Footwear Brand Finds Rapid Fulfillment

    Visit Our Sponsors

    Antuit Zebra Anvyl AutoStore
    BEUMER Group Blue Ridge Global Brother
    CHEP Cleo Coenterprise
    Data Capture E2open Enveyo
    Eva Air ForwardX Robotics Frayt
    GAINSystems Generix Geodis
    GEP Global Supply Chain Marketing Summit GreyOrange
    Here Holman Logistics Infor
    Inmar Kinaxis Lexis Nexis
    Locus Robotics Logility LogistiVIEW
    Lucas Systems MCA Connect MPO
    Old Dominion OneRail Overhaul
    PartnerLinQ (Visionet) Port of Virginia Ryder E-commerce by Whiplash
    Saddle Creek Logistics SAP Shyft
    Sourcemap SPS Commerce Tecsys
    TGW Systems Thomson Reuters Veho
    Verusen Walmart Workshop
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Your Subscription
      • Newsletters
    • Resources
      • Events Calendar
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing