When we think about a supply chain, we typically only think of the process of getting a physical item from one point to another.
In reality, a supply chain encompasses all the individuals, organizations, resources, operations, and technology involved in supplying a product or service to a customer. To understand the impact of supply chain collaboration and digitization on supply chain performance, DiCentral partnered with Lehigh University’s Center for Supply Chain Research on a study titled, “What Every CFO Needs to Know About Supply Chains.”
This study covers not only the physical supply chain, but also the financial supply chain, and the interaction between the two. Understanding the interaction between the physical and financial supply chain is emphasized by where organizations place value on key metrics, including Days Sales Outstanding (DSO), Cash Forecasting, Profitability, and Cashflow.
This research study's objective was to better understand the areas in which executives believe supply chain investments would have the greatest impact on the company's financial performance. Data collected and analyzed suggests that digital, physical, and financial supply chains directly influence corporate performance and that there is a strong desire for further digitization. We discovered that most supply chain professionals and CFOs felt that digital integration with customers and suppliers was critical to executing this vision since many processes are directly linked to financial indicators.
With this in mind, we took a closer look at:
- Supply Chain Signals for Revenue Recognition
- Costs of Manual Data Entry
- Electronic Payments
- Corporate to Bank Integration vs. Manual Payments
The infographic below highlights key statistics from the study, “What Every CFO Needs to Know About Supply Chains.” Download the full research study for more information and additional insights into the digitization of supply chains and their effect on corporate finances.