Supply Chain Interdependencies Are Often Entangled

September 24, 2012
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According to The Cost of Control – Disrupted Networks, a report we recently conducted by Basware, nearly 70 percent of financial executives believe that supply chains are becoming complex networks of interactions – making it increasing difficult for them to reduce costs. And nearly 60 percent say this complexity is making it more difficult to gain visibility into supply chains and supplier payables.

These complex networks are creating problems for suppliers as well. CFOs are concerned about the impact that tight credit lines have on their suppliers. And, two-thirds of financial executives recognize the problems that late or erroneous payments create for their suppliers, yet late payments still exist.

But, interdependent supply networks also offer greater opportunities for collaboration. Fifty-six percent of finance executives consider shared information and e-commerce systems to be the most effective methods for enhancing businesses collaboration across disparate supply chains.

By collaborating across an interdependent network, both buyers as well as suppliers can increase visibility and reduce costs. Buyers can identify discounting opportunities, better manage spend and working capital, and suppliers can speed order-to-cash. By focusing on building collaborative relationships, information sharing and transparency, buyers and suppliers can effectively navigate the complexity of these supply chain networks and achieve control over their financial value chain in an increasingly interdependent world.

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