Businesses Want Supply Chain Services

Posted by Mark Brousseau

There is a market for integrated financial supply chain management services, according to Financial Insights’ 2007 North American Commercial Payments Study.

Areas of potential cooperation clearly emerge in accounts receivable (A/R) and accounts payable, Financial Insights reports. The full benefits of financial supply chain reengineering have yet to be recognized, the consulting firm notes, indicating prospects for businesses, bankers and vendors to work together more closely to realize joint benefits. Banks have not grappled with their own business processes, and they do not have an execution framework, Financial Insights found. Meantime, businesses do not see them as supply chain providers or, if they do, they see them in the same position as supply chain vendors.

“Businesses are receptive to supply chain services, and banks have everything to gain and lose. Transforming payments to business processes is the key,” says Maggie Scarborough, research manager, Financial Insights Corporate Banking Advisory Services.

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