Data & Supply Chain Cashflow

This week we’re talking with Jim Wilson, Functional Lead at Nitor Partners. With over 30 years of experience in banking, international treasury, and accounting with various major companies, he’s here to break down how you can strengthen your cash flow and improve your supply chain.

Jim dives into the various ways of arranging international trade payments and the nuances that come with doing business overseas. Optimizing payments help your company to manage resources and improve cash flow.  Letters of credit are common, and can help manage cash flows, but there are other methods that companies often over look. 

There’s also the option of extending payment terms. If you are paying your suppliers later, you can hold onto more cash. The name of the game, Jim says, is to extend the payments as long as possible and one way to do that is to follow industry metrics. 

At the crux of extending payment is utilizing data to identify the opportunity to extend payment terms. When working with his clients, Jim will look at the previous 12 months of spending, segmented by the supplier, industries, and other specialized categories. From there, they’re able to look for inconsistencies between the client’s payment terms and the averages. Jim can help you use that data to compare how you’re paying versus other competitors in your industry. 

Jim then goes on to describe the reasons why so much money is being left on the table when it comes to payment terms. Much of the problem stems from a lack of understanding about the process and how to maximize cash flow through the negotiation of payment, the steps a company takes to send and receive payment, and more. He then shares with us his best practices in regards to finding data, using it, and making a decision. 

Things You’ll Learn

1. The fundamentals of analyzing payment terms: getting the data, analyzing it, and making a decision based on the analysis.
2. How data can be used to leverage a better situation for your company when compared to your peers and competitors.
3. Major pitfalls companies face, and best practices for maximizing cash flow.

Episode Sponsors:  

Modifi Payment Solutions.
www.modifi.com
Business Payments for Global Commerce
With MODIFI, Sellers get paid instantly, while their Buyers have the option to pay later. Flexibly. Digitally. All over the globe.

Acclime China
https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China

Website: www.intltraderesources.com

Email: intltradepodcast@gmail.com

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