In this article, we explore the finance supply chain, and use our recent poll results to explore if finance is part of your organisation’s supply chain management (SCM) strategy.
Supply chain management is crucial for ensuring the efficient movement of goods and services in the business world. It involves overseeing the entire process, from sourcing raw materials to delivering the final product to the end consumer. The goal is to ensure a seamless flow of products, minimising delays and maximizing customer satisfaction. Effective supply chain management is essential for businesses to remain competitive and meet the demands of the market.
Companies across industries invest substantial resources in optimising their supply chains, focusing on areas like procurement, logistics, and demand forecasting. However, one crucial aspect that often goes overlooked or underutilised is the integration of finance within the broader SCM strategy.
Finance, typically associated with accounting, budgeting, and financial analysis, may seem disconnected from the operational intricacies of SCM. However, in reality, it plays a vital role in optimising the supply chain. It can also significantly impact its overall effectiveness and profitability.
Poll results
In our recent LinkedIn poll, we asked our social media followers if finance is part of their SCM strategy.
Finance Supply Chain: What we found
Yes – 55%
A resounding 55% of the respondents acknowledged that finance indeed plays a significant role in their supply chain operations. This overwhelming majority emphasizes the growing recognition among businesses of the importance of aligning financial considerations with supply chain management efforts.
The fact that more than half of the respondents prioritise incorporating finance into their supply chain strategies highlights a positive trend towards holistic and comprehensive decision-making. It signifies a strategic shift from viewing supply chain management solely as an operational function to understanding its inherent financial implications. By recognising the interdependencies between these functions, these businesses are positioning themselves to unlock a range of benefits.
Not yet, but working on it – 18%
Interestingly, 18% of the respondents expressed that finance is not yet fully integrated into their SCM strategies but acknowledged that they are actively working towards achieving this alignment. This response reflects a proactive mindset among these businesses, recognising the untapped potential and benefits of incorporating finance into their supply chain operations.
The acknowledgment that finance is not yet fully integrated indicates an awareness of the importance of financial considerations within the broader supply chain context. By acknowledging this gap, these organisations are taking steps to bridge it and recognise the value that finance can bring to their SCM strategies.
By actively working towards integrating finance into their SCM strategies, these businesses are also positioning themselves for improved decision-making and enhanced operational efficiency. They are likely in the process of evaluating their current financial practices. As well as identifying areas where it can be better integrated into their supply chain functions.
No – 27%
Finally, 27% of the respondents stated that finance is not part of their SCM strategy. This response suggests a significant portion of businesses has yet to integrate finance into their supply chain operations. However, it also highlights an opportunity for improvement and growth in these organisations.
The fact that finance is not currently part of their SCM strategy indicates a potential gap in understanding the importance of aligning financial considerations with supply chain decision-making. It suggests that these organisations may not fully understand how financial factors can affect their supply chain and performance.
More information
B2BE’s experience in the supply chain sector allows our customers to build, expand and adapt successfully, enabling greater effectiveness. To engage with B2BE and offer feedback on what matters most to you and your business, make sure to follow us on LinkedIn and across social media. You can also vote in our latest LinkedIn poll. If you’d like to discuss your supply chain strategy, get in touch with us.