Continuing on the topic of Supply Chain Finance (SCF), Aberdeen provides actions for companies based on their best-in-class status as highlighted in the report, “The 2008 State of the Market in Supply Chain Finance,” Table 2 below allows you to determine where your organization fits:

When a company sets out to improve its SCF practices, having a holistic approach is important to understand the cross-functional impact of the proposed changes. After defining your organization’s status, Aberdeen suggests the following actions:

Laggards:

• Institute the basic automation capabilities for streamlined AR/AP processing
• Identify areas for improvement.
• Adopt a mindset for the end-to-end financial supply management.

Industry Average:

• Adopt a mindset for the end-to-end financial supply chain management.
• Structure more complex financing programs.
• Select a SCF technology roadmap.

Best-in-Class:

• Integrate physical and financial supply chains.
• Adopt advanced technology.

For more information on this topic or additional information on the actions described above, you can download a free copy of the report by clicking here.