Fergus Groundwater.pptVIP

Global Trade Management and Supply Chain Finance Delivering Competitiveness in Global Supply Chains June 2nd, 2008 Globalization is driving fundamental changes in business models that heighten the importance of Supply Chains: Outsourcing Low-cost country sourcing Longer, more complex supply chains Increased compliance and security Requirements Technology is altering business models Globalization increases opportunities: New markets channel Supplier innovation Lower costs While accentuating the risks: Delivery risks Performance risk Compliance risks Payment risks Value Chain Convergence What is GTM, Really ? GTM = Supply Chain Management Supply Chain Risk Management Integration of Financial Physical Supply Chains focused on delivering cost efficiency Accelerated by technology and inter-corporate process integration Importance heightened by off-shoring and increasing complexity of SCs What does it mean to: Key Data from EDC Research Canadian “Bar-Bell” Procurement / supply chain management remains a buying function for most SMEs Limited view of strategic role of supply chain management Many manufacturers live in the “area code” supply chain model Going offshore seen as important, but.. Limited skill and capacity engage in global sourcing Inventory investment required due to long lead times Fear of quality / performance / delivery risk Most are underinvested in technology, yet recognize its value in participating in global supply chains. The Supply Chain Framework Key drivers in Global Supply Chains Global Trade Management (GTM) and Supply Chain Finance (SCF) are emerging as increasingly critical areas of focus as supply chains evolve in terms of global reach and complexity. Supply Chains – Managing the Working Capital What is Supply Chain Finance? The primary Financial Supply Chain trend in the past decade has been the growth in Open Account (O/A) transactions, or “trading on O/A terms” Combination of financial services and technology solutions that Links