Financial Consultant | Posted on
Supply chain system emerges as a set of integrated software solutions which manage and oversee the flow of –
• Goods
• Data
• Finances
When a product/service moves from its point of origin to the final destination, the supply chain is complete.
The supply chain finance or SCF is also known as reverse factoring. It is essentially a set of solutions which helps to optimise cash flow by permitting businesses to increase their payment terms to their suppliers. They provide the option to get paid early. The supplier list includes buyers, sellers and financial institutions. This lowers the financing expenses and also enhances the efficiency of your business. It proffers a short term credit which optimises your working capital (WC).
Supply chain management is something that every businessman must know. If you understand it, you can create a balance between your customer gratification and cost-effectiveness along with competitive advantage.
Why is it so important?
a. It addresses your business pain points and helps increase your overall customer satisfaction.
b. The system reduces your inventory costs which otherwise can prove to be highly expensive.
c. It improves your cash inflow and outflow. If you implement effective strategies, then you can easily detect any leaks in the process and let your product reach the customers as soon as possible.
d. You can achieve a great result both in terms of efficiency as well as ROI. If you focus on every area and ensure all links are optimised, then you earn the maximum benefit.
An integrated supply chain is essential for your business. However, purchasing the software, recruiting a manager and possessing adequate funds can prove expensive.
So, do not deplete your cash reserves, and rather opt for unsecured supply chain finance from NBFCs like Bajaj Finserv who lets you borrow amounts as high as Rs. 30 Lakh.
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