Integrating Material and Financial Flows in a Supply Chain
Firms in the past have mainly focused on improving the material flow in a supply chain using various innovative methods like cross docking, Vendor Managed Inventory (VMI), Collaborative Planning, Forecasting and Replenishment (CPFR) etc. Firms have also used IT solutions to automate the material flow. Today, they have also begun to focus on improving the financial flow in the supply chain. Many firms have adopted best practices of cash flow management to improve the financial flow. One of the key elements which helps in efficient financial flow in a supply chain is the use of IT solutions in the purchase-to-pay and order-to-cash processes. By automating these processes firms can minimize inefficiencies and improve the effectiveness of the supply chain.Many firms have automated the same or all of the elements of the financial flow in a supply chain through implementing ERP systems and cash flow management solutions. However, most firms have Continue reading