This article examines business-to-business (BSB) finance, and particularly why the benefits of order to payment (O2P) processes have largely been limited to buyers, while excluding suppliers. It suggests that treasurers should be driving a more integrated approach to supply chain finance (SCF).
The trend of buyers and suppliers to automate their order to payment (O2P) processes in order to improve the efficiency, visibility and transparency of O2P transactions is something seen around the world, as is the scarcity of funding on the capital markets and the search for alternative methods of funding by buyers and suppliers. This is where supply chain finance (SCF) can play a role. Combining both the physical and the financial supply chain it offers a winning concept, but one that can be realised only when the physical and financial supply chain is integrated throughout an entire organisation. This is where the treasurer can play a role. An earlier gtnews article, entitled ‘how the physical and financial supply chain meet each other’ examined the rapid integration between these two worlds.