Capital is the fuel of any business; without it, it will grind to a halt. Today's MNEs are facing a plethora of challenges due to the complex business environment characterized by a web of transaction networks. The topic is more critical than ever, as capital has a tendency to get locked up in inventories across the supply chain, or due to suboptimal process related to cash management.
Getting Your Products Across
Today's MNEs are facing numerous challenges in their global supply chains, and as complexity grows, this also means that there are more things that can go wrong. Ensuring smooth operations today not only means working with the right partners, but also having the transparency and support to reduce the risks for hiccups en route.
Unlocking Sources of Capital
In any company, there are two principal sources of capital, namely internally and externally. Internally, capital is often tied up in inventories across the supply chain, as raw material, semi-finished goods, or finished products. Also an adversarial situation may arise by not managing the cash-to-cash cycle adequately, thereby creating excess amounts of working capital. We have done many projects with drastic working capital reductions through simple yet effective approaches such as better invoicing processes.
Externally, sources of capital relate to lenders and investors. For the short term, liquidity deficits are always a risk lurking around the corner, in particular in cases where goods get stuck in customs, or if customer payments get delayed. In situations where margins are thin, ensuring liquidity can be critical for survival. For the long term, securing capital for investments in new production capacity or product development to drive future business growth also provides a formidable challenge that needs to be addressed.
Having vast experience of supporting trade and finance operations of MNEs in mature and emerging markets, we can offer a range of services that meet the needs of our clients. Such offerings include (but are not limited to):
- Site assessment & selection
- Sales channel & distributor network setup
- Online and offline marketing
- Investment decision analysis and support
- Import & export handling
- Supply chain financing
Please contact us directly for a more thorough overview of our detailed service offerings.