The supply chain can be viewed in multiple ways. On one hand, there’s the physical supply chain that everyone is familiar with, comprising the organizations, processes, and assets that move goods and related services along the supply chain. On the other hand, there is also the financial supply chain that affects a company’s process flows because it follows the flow of money and manages the allocation of funds. To maximize the performance of any physical supply chain, organizations need to integrate the financial supply chain into their management processes.
Why the Financial Supply Chain Needs Prioritization
The goal of every supply chain manager is to create deeper processes and transparency in business performance. To do so, cash flow must be tracked from production to consumption which will identify cash-impacting events. That’s why the financial supply chain should be a critical focal point for every organization, since it can analyze trade-offs to maximize profitability, while minimizing expenses. By working backwards from the consumer to the supplier, the supply chain manager can use an outside-in approach to analyze the processes and events that affect working capital, payment terms, pricing, and inventory.
Even though it may seem time-intensive and complex, managing the financial supply chain can ultimately simplify processes and create efficiency regarding financial transactions between supply chain partners. This can lead to focusing on trade-offs that benefit both parties and improve long-term outcomes. Most importantly, when financial supply chain management has end-to-end visibility across the supply chain, it can lead to reduced costs and more working capital.
Regrettably, many organizations don’t, or are slow to, adopt financial supply chain management. Instead, cost-cutting measures typically drive companies to look for ways to make the physical supply chain more efficient. This leaves the financial supply chain as a perpetual area of opportunity. One of the obstacles for adoption is integrating financial supply chain management with traditional supply chain management processes.
Choose Supply Chain Management Software That Integrates with Existing Tools
Every organization has unique needs. As such, your existing ecosystem of software tools is most likely different from any other company. Your supplier verification service shouldn’t hinder your ability to manage your financial supply chain. That’s why Avetta designed an integration-friendly platform that makes communicating across your systems simple and easy.
Here’s why integrating with Avetta is the right choice:
Easy Implementation: Rest API standard protocol architecture makes data easy to access and integration easy to implement.
Security: Our pull-only integration and API key authentication offer a secure way to connect Avetta’s supplier data to existing systems.
Flexibility: Avetta uses open APIs based on industry standards so it’s easy to integrate with a variety of systems and endpoints.
When you integrate Avetta’s supplier verification platform into your ecosystem, you get enhanced visibility into almost every aspect of your supply chain. Pull contact information, account status, flag status and reason, audit data, and more. Managing your financial supply chain is just as important as managing your physical supply chain. With Avetta, managing both just got easier.
Learn more about how Avetta’s Systems Integration Services can help you manage both your physical and financial supply cain.