In an environment where global supply chains connect large and small enterprises, where real-time payments are becoming the norm, and where there is increasing scrutiny of corporate social responsibility, supply chain finance – empowered by intuitive data analysis – comes into its own, explains Enrico Camerinelli
Sustainable supply chains see the participation of public authorities or private corporations seeking to achieve the appropriate balance between financial, environmental and social considerations in the execution of procuring goods and delivering services or works at all stages of the value-transformation cycle. Such considerations pertain, for instance, to the respect for core labour and safety standards in the production process, and the energy efficiency performance and innovative characteristics of the purchased products
SMEs and trade facilitation
Trade facilitation programmes and practices have concentrated on a variety of mission-critical elements in both the public and private sectors, from education to logistics, and from infrastructure to regulatory considerations. Focusing primarily on the physical movement of goods and developing solutions around it are the commonly understood scopes of trade facilitation. However, the exclusion of financing as an element of these efforts, and as a key component of trade facilitation, misses a critical commercial reality that underpins global trade flows, trade relationships and international supply chains. New banking regulations have, in many cases, made access to trade finance more difficult for small and medium-sized enterprises (SMEs) than before, particularly when SMEs are based in developing and emerging markets, as is the case today for many SME suppliers linked to global supply chains.
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