8 Reasons to Digitize Your Supply Chain Finance Management
From manufacturing and procurement of goods to delivery and return, the supply chain industry performs a host of business functions to supply goods across the globe. However, mundane processes like finance management are typically extremely time consuming for supply chain companies, preventing them from achieving their full potential. Cloud-based digital platforms for supply chain finance management help automate such processes, increasing the overall productivity of these companies. Here are some reasons to choose a cloud-based digital platform for one’s supply chain finance management:
Quick, timely payments
Delays in payments are highly common in the supply chain sector, causing problems like delays in delivery, challenges with completing orders, and the inability to maintain inventory levels. With supply chain finance management platforms, one simply needs to upload pre-approved invoices on the application, following which the platform pays a fixed percentage of advance amount to the supplier, together with the entire remittance of the payable amount by the due date.
Globally accessible platform
A cloud-based platform can be easily accessed from anywhere in the world, connecting suppliers, buyers, and financial institutions situated in any part of the country or globe. Consequently, coordination between all the parties involved in supply chain processes becomes seamless and efficient.
Automatic ERP integration
Enterprise resource planning (ERP) integration is an essential process that helps one smoothly run the entire business. A digital platform for supply chain finance management performs this process automatically, saving employees’ time and increasing workplace efficiency.
Highly customizable application
Software applications used for supply chain are highly customizable, ensuring integration with the client’s ERP system and quick approvals, auto-intimation, and payment as a result.
When carried out through a digital platform, the processes involved in supply chain finance management, including dynamic discounting and timely payments, are completed with total transparency. In other words, the suppliers and buyers know exactly what stage the payment process is at and by when it will be completed, eliminating any confusion along the way.
Optimal fulfillment of working capital requirements
Digital platforms for supply chain finance management are dedicated to fulfilling the increasing working capital requirements among MSMEs, corporate firms, mid-sized and large-scale companies, etc. Therefore, they adequately address the issue of lack of funds for growth, allowing MSMEs to utilize their invoices as assets and have them funded through banks or NBFCs.
Flexibility in terms of due date extensions
While digital platforms work toward timely payments, they accommodate delays by buyers in case of any temporary setbacks. In such cases, buyers can flexibly extend their due dates, following which the supplier is immediately notified of the change in schedule. Such flexibility combined with a systematic approach allows buyers to manage their expenses better while ensuring that sellers know when to expect their dues.
Customizable reports and dashboards
Users can freely customize their reports and dashboards based on their requirements in terms of overdue invoices, accrual of interests, limit utilizations, etc.
Digitization of supply chain finance management is beneficial in several ways, allowing supply chain employees to come up with innovative strategies and ascend in their careers as the platform ensures quick, timely payments with minimal human intervention. Zuron is one of India’s leading SaaS-based supply chain finance platform startups, dedicated toward integrating suppliers, buyers, and financial institutions and making the transaction process systematic and convenient. We would be happy to assist you with digitizing your supply chain finance management. Click here to connect with us today!