Interviews
'Financial supply chain vital in global textile sourcing'
13 Oct '14
2 min read
“Financial supply chain has proven to be a winning solution in global sourcing of textiles and garments as buyers are relieved of risk and cost and suppliers have access to capital they need to run their business,” a top honcho of a cloud based supply chain platform provider told fibre2fashion.
Kurt Cavano, Founder, Vice Chairman and Chief Strategy Officer at GT Nexus, a US company he founded in 1998, was discussing and explaining importance of financial supply chains and importance of cloud based platform in global sourcing of textiles and garments.
GT Nexus helps client companies in managing their logistics and trade processes and believes that in the future, one may not get to see competition amidst companies. But rather, the competition would be amidst supply chains.
It strongly propagates the use of cloud technology in supply chains and works on a single idea - to put a cloud platform at the center of an industry, and let companies access a number of supply chain processes cheaper and faster.
He said, “Financial supply chain refers to capital and liquidity across the supply chain. A growing number of companies are recognizing the supplier-related risks that stem from capital constraints. For a long time, suppliers were being beaten down on price and payment terms.
“This resulted in suppliers struggling to survive. The potential impacts of a supplier going out of business or of being late on an order are well documented. Companies have recognized the need to partner with suppliers on the approach that ‘my supplier is an extension of my business’ and taking steps to ensure their financial health.
“Several programs are available today, such as early payment programs that give suppliers access to payment within days. These programs not only remove time from the payment cycle, they also remove capital costs.
“When the buyer, supplier and finance provider are tied together on the same network, the finance provider can offer financing to the supplier based on the credit strength of the brand or retailer.” (AR)
Click here to read rest of the interview.
Kurt Cavano, Founder, Vice Chairman and Chief Strategy Officer at GT Nexus, a US company he founded in 1998, was discussing and explaining importance of financial supply chains and importance of cloud based platform in global sourcing of textiles and garments.
GT Nexus helps client companies in managing their logistics and trade processes and believes that in the future, one may not get to see competition amidst companies. But rather, the competition would be amidst supply chains.
It strongly propagates the use of cloud technology in supply chains and works on a single idea - to put a cloud platform at the center of an industry, and let companies access a number of supply chain processes cheaper and faster.
He said, “Financial supply chain refers to capital and liquidity across the supply chain. A growing number of companies are recognizing the supplier-related risks that stem from capital constraints. For a long time, suppliers were being beaten down on price and payment terms.
“This resulted in suppliers struggling to survive. The potential impacts of a supplier going out of business or of being late on an order are well documented. Companies have recognized the need to partner with suppliers on the approach that ‘my supplier is an extension of my business’ and taking steps to ensure their financial health.
“Several programs are available today, such as early payment programs that give suppliers access to payment within days. These programs not only remove time from the payment cycle, they also remove capital costs.
“When the buyer, supplier and finance provider are tied together on the same network, the finance provider can offer financing to the supplier based on the credit strength of the brand or retailer.” (AR)
Click here to read rest of the interview.
Fibre2fashion News Desk - India
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