Trade Services
Trade services featuring articles and comment on issues impacting trade finance, supply chain finance and supply chain management
Latest Article:
The supply chain is a company's secret weapon
In capital-constrained times, Drew Hofler of Ariba says the supply chain is a "secret weapon" for companies to put money to work.We have all heard the stories about corporates hoarding cash. REL Consultancy estimates that there is USD 1.7 trillion being hoarded in cash by big corporations. Most corporations are not getting a great return on their cash however, with yields on most short-term investments much lower than they have been historically.
In the January 2012 edition of financial-i, Drew Hofler, senior manager, Financial Solutions, Ariba, maintains that corporates should seriously consider putting their excess cash to work by looking more closely at opportunities within their supply chain. "Cash that's hoarded in traditional, low-return liquidity vehicles is cash that's losing value and potentially creating risk," says Hofler.
Ariba maintains that buyers on its network captured discounts of more than USD 4.5 million in 2011 and that buyers receiving these discounts saw average annual returns of between 10% and 30%, far greater than the returns delivered through traditional investments.
For Drew's full article click here.
Recent Posts
The supply chain is a company's secret weapon
In capital-constrained times, Drew Hofler of Ariba says the supply chain is a "secret weapon" for companies to put money to work.
Read More >>
A work in progress
Bringing the cash and trade businesses together in banks in order to deliver working capital efficiencies to corporate clients makes sense...
Read More >>
The Basel bashing continues
Banks told to do more advocacy with customers when it comes to explaining the impact of Basel III on the costs of capital, and to get their...
Read More >>
Trade receivables securitisation is back in vogue
Avarina Miller, senior vice president, Demica, says the trade securitisation market is returning as a cost-effective form of corporate...
Read More >>
Transaction banking needs to change to accommodate shifting trade flows
Mauritius, Johannesburg and Dubai are likely to be new locations for regional treasury centres as global trade flows shift towards...
Read More >>
Video interviews
Current issue
Supply chain finance programmes do not always benefit SMEs, and banks have not shown much inclination to offer financing options, despite government pressure. A new auction-style solution is now benefiting smaller companies, reports Rebecca Brace.
Download Article >>
In a volatile and uncertain economy, the supply chain is a company’s secret weapon to put money to work, says Drew Hofler, senior manager, Financial Solutions, Ariba.
Download Article >>
Conditions are volatile but trade and supply chain finance continues to make steady progress, says A.R. Malaket who paints a predominantly optimistic picture for the business in the coming months.
Download Article >>
