Before you head off for a destination, it’s vital to know where you are and in which direction you are facing. That is why the Supply Chain Finance Community was very pleased to partner with PwC on the first-ever SCF Barometer.
Together, we launched it at the SCF Forum in Amsterdam in December with the headline findings being presented by PwC partner Rob Kortman and my colleague at Windesheim University, Associate Professor Ronald de Boer.
The SCF Barometer gives the clearest picture we’ve ever had as to the current rate of use of supply chain finance and its success.
It’s gratifying to see not only that such a significant proportion of major European businesses have already adopted some form of supply chain finance – predominantly reverse factoring – but that their satisfaction levels are high and that so many have ambitions to expand their SCF programmes further.
The SCF Barometer also sheds useful light on the extent of stakeholder involvement, the current triggers for supplier selection, the amount of time it takes to implement an SCF programme and the critical success factors and bottlenecks that need to be taken into account.
This survey showed that supply chain finance has already taken hold in the corporate environment. Almost half of respondents currently have a supply chain finance programme in place. For companies with revenue over €1bn, that figure rises to two-thirds. And three-quarters of SCF programmes currently in place have only been launched within the last four years, demonstrating the rapid growth of SCF. Satisfaction levels were high and many corporates had plans to extend their SCF programmes.
The picture that emerges, therefore, is that supply chain finance as a corporate strategic solution is in a good place – and, most importantly, is on a firm foundation for growth and evolutionary development.
You can download the full SCF Barometer from the SCF Academy website by clicking here. You’re sure to find a wealth of useful information.