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17 December 2010 | Lindsay
Almost three-quarters of
senior finance officers have reported that supplier relationships are a
Seventy-three per cent of
the sample, 168 senior finance executives, from firms with average annual sales
of about $5 billion (£3.2 billion), agreed that supplier relationships are a
top priority, the study by CFO ResearchServices found.
It discovered 81 per cent are
focused on working capital, and they recognised that two of the most effective
methods of influencing this vital business metric are related to working with
suppliers: inventories and accounts payable.
As a result of the focus
on supplier relationships, 82 per cent have either deployed supply chain finance
or are considering doing so. A total of 78 per cent said supply chain finance
helped strengthen relationships with suppliers, 72 per cent said it had also
helped improve working capital efficiency.
“This study reveals
critical challenges faced by senior finance executives and their perceptions of
the role supply chain finance plays in strengthening supplier relationships and
managing working capital,” said P J Bain, chief executive of finance software
supplier PrimeRevenue, which sponsored the research.
In June, research firm
Gartner advised that procurement and finance teams need to work more closely
together to benefit from software which links supplier relationships to cash
management and invoicing systems.
☛ A feature in the winter issue of CPO Agenda concluded a common language was needed between
procurement and finance to help their relationship.