Strategic Management of Trade Working Capital - Creditor Supply Chain

Supply chain is the new definition of payables under traditional trade working capital. The traditional approach to financing trade payables was to use discounting techniques such as bulk discounts, non payments resulting in class actions, etc.

The new approach (supplier chain financing) includes:

  • Segmentation of supplier base to deal with suppliers 'discretely'
  • Pre-shipment finance
  • In Transit or Vendor managed inventory –Ownership
  • Post Shipment- pre acceptance- invoice NOT approved by buyer –right of lien
  • Web Portal
  • Credit Rating links to main customer
  • Purchase Cards
  • Dynamic Discounting

By the end of this course you will be able to:

  • Appreciate the new way of understanding the supply (creditor) side of working capital
  • Be able to explain why the new format is more ‘fit for purpose’ in the new cash environment organisations now encounter
  • Understand why the traditional calculation of ‘Days Purchases Outstanding’(DPO) is at best a ‘general’ guide
  • Gain knowledge from the case studies of how to apply the new methodology to enable you to become more effective
  • Instigate a strategy that could make working capital and therefore cash more efficient

CPD Points: 1.5

CPD Duration (hours): 1.5

Access: 12 months from purchase date

Price: £45.00 (excludes VAT)