Strategic management of trade working capital - 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

Learning Outcomes:

On completion of this course, participants will have a greater understanding of:

  • The new way of understanding the supply (creditor) side of working capital
  • Why the new format is more 'fit for purpose' in the new cash environment organisations now encounter
  • Why the traditional calculation of 'Days Purchases Outstanding'(DPO) is at best a 'general' guide
  • Gaining knowledge from the case studies of how to apply the new methodology to enable you to become more effective
  • Instigating a strategy that could make working capital and therefore cash more efficient

Authored by: John Mardle

An independent educationalist and author on working capital, John has recently written many articles for leading publications as well as facilitating and being a panellist at major events involving the Bank of England, Lloyds Banking Group, UKTI, major technology providers and VC/PE organisations. His recent work has involved ITV, DHL, Sprint Convergence, Astrium Satellites and numerous SMEs, banks, financial institutions and investment houses. John has held senior executive positions in blue chip companies such as Bombardier, Parsons, ABB, Alstom and Wimpey Taylor where he delivered worldwide programmes of strategic cash importance.

CPD Points: 1.5

CPD Duration (hours): 1.5

Access: 12 months from purchase date

Price (excludes VAT): £50.00