The ongoing global economic downturn has resulted in supply chain disruptions, payment delays and payment defaults. Adeline de Metz, UniCredit, considers the range of options that buyers have to achieve supply chain stability during a period of unprecedented imbalance.
Working capital conversations between banks and corporates have typically focused on individual bank products, rather than the specific needs and challenges of the corporate – leaving opportunities and efficiencies on the table. But that’s all changing now, as Adeline de Metz, UniCredit, explains.
Treasury and supply chain disruption caused by external factors is nothing new, but recent developments may be making it the new normal. Therefore, the ability to switch technology and supply chains to new locations/suppliers with the minimum of upheaval is becoming a business imperative. This applies not just to the physical supply chain but also the financial one that underpins it, which presents corporate treasuries with significant additional challenges.
Increased pressure from investors and consumers is driving corporates to hold their suppliers increasingly accountable to sustainable and ethical standards. However, technological innovations are making sustainable SCF more of a tangible reality for treasury professionals in all areas of the industry.
A lasting partnership between Bahrain-headquartered AIG and BNP Paribas has kick-started a number of long-term digitisation and automation initiatives, resulting in improved finance and treasury processes.