The disruption, spanning the East Coast down to the Gulf, all the way from Searsport, Maine, to Brownsville, Texas, could spell disaster for both domestic and foreign supply chains across multiple sectors.

It would be the first coast-wide dockworker strike on American shores since 1977, and the threat of its arrival comes as about 45,000 members of the International Longshoremen’s Association’s (ILA) are seeking a new agreement with the U.S. Maritime Alliance before their contract expires Monday (Sept. 30).

A labor strike could affect the global supply chain, leading to delays, shortages and rising costs at a time when inflationary pressures and economic uncertainties already weigh heavily on the economy. The ports staffed by ILA members, including those in New York, New Jersey and Savannah, Georgia, are vital for the import and export of goods in the U.S. and receive 41% of the United States’ port volume, the Financial Times reported.

“A strike at this point in time would have a devastating impact on the economy…,” warned a coalition of 177 trade groups in a letter to President Joe Biden Tuesday (Sept. 17).

Cargo diversions and other contingency plans have been set into motion by shippers and logistics providers, including shifting volumes to West Coast ports, CBS News reported, although these options come with higher costs and their own set of challenges.

With the holiday shopping season approaching, businesses may be forced to scramble for alternatives to meet consumer demand, risking either product shortages or costly air freight shipments to maintain inventories.

Read also: Managing Risk and Uncertainty Headline Commerce Department’s Supply Chain Summit

Controlling for Uncertainty Within the Supply Chain

A prolonged disruption across East Coast ports would send shockwaves through supply chains worldwide, particularly for industries reliant on just-in-time inventory systems or specialized materials. Given the interconnected nature of global commerce, the consequences of even a short-term strike could reverberate beyond the U.S.

July PYMNTS Intelligence revealed that concerns over supply chain integrity and macroeconomic conditions highlight how larger external factors remain on chief financial officers’ radars.

As businesses brace for the potential strike at U.S. ports, the importance of proactive planning cannot be overstated. While the exact outcome remains uncertain, the potential consequences of a labor disruption at key maritime gateways are clear: delays, higher costs and strained supply chains.

Companies that take steps now to diversify their logistics strategies, strengthen supplier relationships and use technology will be better positioned to weather the storm, and for many businesses, the key to survival lies in agility, adaptability and the ability to navigate uncertainty.

Building stronger relationships with suppliers — both domestic and international — can help companies secure more favorable terms and greater flexibility in the event of supply chain disruptions. Open lines of communication with suppliers can help businesses stay informed of potential risks and delays, allowing for more effective contingency planning.

At the same time, digital tools and data analytics can provide businesses with better insights into their supply chains, allowing them to anticipate potential delays and adjust their logistics strategies in real time. These tools can also help companies identify inefficiencies and streamline operations, making it easier to adapt to unexpected disruptions.

See also: How Digital Transformation Aligns Supply Chains With Compliance, Sanctions Risk

The Future of Supply Chain Risk Mitigation

The specter of the worker strike serves as a reminder of the fragility of supply chains and adds another snarl to the global shipping landscape atop ongoing attacks from Houthi militants in the Red Sea and broader geopolitical tensions.

Still, although disastrous events can trigger repercussions around the globe, they have also forced companies to invest in upgrades that have resulted in smoother procurement and supply chain efficiencies, rather than relying solely upon just-in-time delivery workflows.

The PYMNTS Intelligence report “Digital Payments: Modernizing Procurement Processes” revealed that corporations learned lessons from the supply chain disruptions triggered by the COVID-19 pandemic. As a result, many of those companies took steps to improve their supply chain procedures.

At the same time, the embrace by firms of some of the more spear-tip advances reshaping logistics and warehouse fulfillment, such as automation, remain a central concern of the ILA members threatening to strike.

“We will not accept automation replacing the men and women who built this industry with their blood, sweat, and sacrifice,” said ILA Executive Vice President Dennis A. Daggett in a statement Friday (Sept. 20).

The post US Supply Chain Risks Escalate With Potential 45,000-Strong Dockworker Strike appeared first on PYMNTS.com.

That supply chain came under a spotlight with the Tuesday (Sept. 17) news that Axiom Space, a key NASA partner on the development of a private space station in low-Earth orbit as well as for spacesuits that could one day be worn by astronauts on the Moon, is facing financial difficulties that could imperil these projects as well as leading it to reportedly fall behind on payments to its own suppliers.

These issues not only reveal the intricate web of dependencies in a highly specialized industry, but also highlight broader lessons for businesses navigating the risks inherent in B2B supply chains — even earthly ones.

After all, the intricate nature of trading in earth’s orbit for the great blue yonder (space, not the afterlife) requires that every component — from spacecraft modules to microchips — is delivered on time and meets the highest quality standards. Each supplier in this chain is not just responsible for delivering a part but for ensuring the part adheres to NASA’s stringent regulatory and safety requirements, with many suppliers serving as specialized firms that are the sole providers of specific parts or technologies.

This heavy reliance on niche suppliers creates an inherent vulnerability: any disruption at even one link in the chain can have a cascading effect on the entire project. And with projects costing billions of dollars and spanning years, these delays can become both costly and problematic.

As industries globally contend with increasingly complex and interconnected supply chains, NASA’s experience offers a cautionary tale about the hidden risks and opportunities for B2B enterprises in managing such networks.

See also: How Digital Transformation Aligns Supply Chains With Compliance, Sanctions Risk

Supply Chain Disruptions in the Context of B2B Risk

NASA’s reliance on highly specialized suppliers is emblematic of a broader risk in B2B supply chains — the lack of redundancy.

While relying on specialized suppliers can drive innovation and ensure quality, businesses must increasingly consider alternative sources for critical components. Diversifying suppliers not only reduces the risk of disruption but also creates competitive pressure that can lead to improved pricing and service levels.

When businesses rely on a single vendor for critical components, they expose themselves to significant risks if that vendor fails to deliver. For smaller firms, this may result in production halts, while for larger enterprises, the ripple effects can cause disruptions across multiple product lines or geographies.

And as the NASA supply chain pain points also reveal, many B2B businesses tend to grapple with inherently extended lead times, particularly in industries like aerospace, pharmaceuticals, and automotive, where the sourcing and development of parts are complex and time sensitive. The lengthy timeframes for developing custom parts or conducting rigorous testing create vulnerabilities to changing market conditions, regulatory shifts, or unforeseen logistical hurdles.

July PYMNTS Intelligence revealed that concerns over supply chain integrity and macroeconomic conditions highlight how larger external factors also remain on CFOs’ radars.

Businesses can help mitigate the impact of unexpected delays by engaging in regular communication with their suppliers to identify potential bottlenecks early. Establishing clear expectations, fostering open communication, and working collaboratively with suppliers can help resolve issues before they escalate into major disruptions.

Read more: Managing Third-Party Risks Emerges as Key B2B Issue

Enhancing Supply Chain Visibility With Technology

At the same time, advanced risk management tools can provide businesses with insights into potential vulnerabilities. Modern software solutions can track the movement of goods and materials across every level of the supply chain, offering real-time insights into potential disruptions. This transparency enables businesses to respond quickly to issues, reducing the likelihood of costly delays.

For example, utilizing predictive analytics and artificial intelligence (AI) to monitor supplier performance and flag potential delays can allow companies to take preventive action.

“The integration of AI, ML [machine learning], and vast computing power, coupled with an abundance of data, has transformed our approach to demand forecasting, inventory flow and cost optimization,” Parvez Musani, SVP, end-to-end fulfillment, Walmart U.S. Omni Platforms and Tech, told PYMNTS. “Customers who can count on you during challenging times will reward you with their continued business. … Businesses must be able to adjust to disruptions quickly.”

Ultimately, NASA’s supply chain challenges serve as a potent reminder that even the most technologically advanced organizations can fall victim to supply chain risks. However, these risks are not insurmountable. By building redundancy, strengthening supplier relationships, enhancing visibility, and fostering agility, B2B businesses can not only mitigate these risks but turn them into opportunities for innovation and growth.

The post NASA’s Supply Chain Issues Put Spotlight on B2B Vendor Risk appeared first on PYMNTS.com.

And with the news Friday (Sept. 13) that the White House is considering closing a rule that allows foreign eCommerce giants, such as Shein and Temu, to ship direct to U.S. consumers without duties or taxes if their shipment’s aggregate fair retail is $800 or less, identifying where their own supply chain risks lie is becoming a pressing challenge for firms around the world.

After all, in an era of geopolitical uncertainty, rising protectionism and growing regulatory scrutiny, managing compliance and sanctions risk has become a key priority for savvy firms looking to expand internationally and win greater market share relative to their peers.

In the realm of sanctions compliance, even minor missteps can have devastating financial and reputational consequences. As international trade becomes more complex, the need for real-time intelligence and innovative financial solutions has grown exponentially. Businesses can no longer rely on traditional methods of monitoring their supply chains, as the dynamic and unpredictable nature of modern trade demands faster, more accurate data to mitigate risks.

At the intersection of these challenges sit ongoing advancements in supply chain financing and real-time intelligence tools, which are emerging as essential components for companies to navigate an increasingly treacherous landscape.

See also: The Convenience-Compliance Conundrum in Cross-Border B2B Payments

Staying Ahead of Rising Threats Impacting Global Supply Chains

Today, the global sanctions landscape includes a myriad of lists, each containing hundreds of entities across multiple jurisdictions. These include not only countries but also specific individuals, organizations and even vessels that are blacklisted. Whereas in the past, businesses might have had to worry about avoiding trade with a handful of embargoed nations, the scope and complexity of global sanctions have grown dramatically in recent years.

Supply chain compliance has traditionally been viewed through the lens of ensuring that partners and suppliers adhere to the same standards as the parent company. This can include everything from environmental regulations to labor practices to tax requirements.

However, the growing complexity of sanctions regimes has added an entirely new dimension to supply chain compliance: the need to ensure that every partner, at every step of the supply chain, is in full compliance with all relevant sanctions and requirements across far-flung jurisdictions.

July PYMNTS Intelligence revealed that concerns over supply chain integrity and macroeconomic conditions highlight how larger external factors also remain on CFOs’ radars.

“For any business conducting commerce across multiple countries and jurisdictions, the continuous evolution of the tax landscape has become the norm. This is why we advise customers to have a long-term strategy when it comes to tax and compliance so that no one event or outside factor can disrupt your business operations,” Sovos President of Revenue Alice Katwan writes in a new PYMNTS eBook, “Beyond the Horizon: How to Identify Unexpected Threats That Could Impact Your Business.”

In many cases, businesses are unaware of the full extent of their compliance vulnerabilities until it is too late. A supplier several steps removed in the supply chain may be engaging in prohibited activities, such as dealing with a sanctioned company, without the knowledge of the primary business. As such, there is an increasing need for tools that provide greater visibility into the entire supply chain.

Read more: Embedded Finance and the Great Supply Chain Reset

The Future of Compliance in Global Supply Chains

While the entities holding the best and most granular information about supply chains tend to be private companies, PYMNTS has previously covered how traditional methods of compliance management often fall short due to their reliance on manual processes and retrospective analysis, highlighting the role that future-fit advances like artificial intelligence (AI) can play in both securing and streamlining the global business landscape by helping firms enhance their AML compliance and detect suspicious activity in real time.

Traditional, manual methods of compliance monitoring — such as periodic audits and static databases — are no longer sufficient. Instead, companies need automated solutions that can provide continuous monitoring of their supply chains and alert them to potential violations as they occur. Real-time intelligence tools, after all, allow businesses to track the movements of goods and materials across borders, monitor the activities of their suppliers and partners and ensure that they are complying with the latest regulations.

While real-time intelligence helps businesses identify and manage compliance risks, supply chain financing offers another layer of protection. Supply chain financing solutions provide companies with access to liquidity, allowing them to maintain the financial flexibility needed to navigate disruptions, such as those caused by sanctions.

In recent years, supply chain financing has evolved beyond traditional trade finance solutions to include more sophisticated options, such as dynamic discounting, reverse factoring, and payables finance. These solutions allow businesses to extend credit to their suppliers, ensuring that they can continue to operate even in the face of financial or regulatory challenges.

And real-time intelligence and supply chain financing are not just useful tools — they are becoming essential components of a modern, risk-aware supply chain strategy. By providing greater visibility into the supply chain and offering financial flexibility, these solutions help businesses mitigate compliance risks and adapt to new challenges as they arise.

The post How Digital Transformation Aligns Supply Chains With Compliance, Sanctions Risk appeared first on PYMNTS.com.

After all, against the backdrop of today’s shifting and dynamic operating environment, the enterprise focus will need to shift from viewing supply chains as cost centers to recognizing them as strategic assets.

Managing for risk and uncertainty by tapping digital innovation was the theme of Tuesday’s (Sept. 10) “Supply Chain Summit” hosted by the U.S. Department of Commerce and the Council on Foreign Relations.

Across over half a dozen sessions, leading voices from the private sector, government and academia came together to unpack how, within an era marked by geopolitical tensions, pandemic-induced disruptions and rapid technological advancements, the stability and resilience of supply chains have never been more critical to both national and global economies.

And throughout panels with titles like, “How the Private Sector Evaluates Supply Chain Risk,” “A Proactive and Strategic Approach to Supply Chain Resilience,” “Ensuring U.S. Competitiveness by Securing Emerging Technology Supply Chains” and “Responding to Disruption,” experts stressed that when it comes to supply chain strength, as in anything else, data is power.

Having the best supply chain requires having the most comprehensive data. By embracing redundancy, technology and collaboration, supply chains can become more resilient, agile and equipped to handle whatever challenges lie ahead, panelists said.

Read more: Embedded Finance and the Great Supply Chain Reset

Navigating the Complexities of Modern Supply Chains

Supply chain risk management is a complex balancing act for private-sector companies, involving multiple stakeholders and shifting variables. During the panel on “How the Private Sector Evaluates Supply Chain Risk,” speakers emphasized the importance of mapping supply chains to gain end-to-end visibility, a task that has become more challenging with the increasing globalization and complexity of networks.

The process of supplier risk assessment, traditionally focused on financial and operational criteria, is now evolving to include geopolitical risk, sustainability factors and cybersecurity threats.

In response, Commerce Department Secretary Gina Raimondo announced Tuesday the department is releasing a new tool, called SCALE, which will assess supply chain risk across U.S. goods and economy.

July PYMNTS Intelligence revealed that concerns over supply chain integrity and macroeconomic conditions highlight how larger external factors also remain on CFOs’ radars.

Cybersecurity risks were another central topic, with panelists warning that as supply chains become more digitized, they are more vulnerable to cyberattacks. Companies are investing in new technologies to bolster cybersecurity throughout their supplier networks, with some leveraging blockchain to increase transparency and secure transactions.

See also: Halftime Report: 18 Payments Executives Share The Issues That Will Define The Rest of 2024

A Proactive, Strategic Approach to Supply Chain Resilience

Building resilience into supply chains requires more than just reactive measures; it necessitates a proactive, long-term strategy.

A central theme of Tuesday’s discussions was the need for strategic redundancy in supply chains, a concept where companies intentionally build backup suppliers, logistical routes and production facilities. Panelists argued that while redundancy may come with increased short-term costs, it provides essential insurance against unexpected disruptions.

“The integration of AI [artificial intelligence], ML [machine learning], and vast computing power, coupled with an abundance of data, has transformed our approach to demand forecasting, inventory flow and cost optimization,” Parvez Musani, SVP, end-to-end fulfillment, Walmart U.S. Omni Platforms and Tech, told PYMNTS. “Customers who can count on you during challenging times will reward you with their continued business. … Businesses must be able to adjust to disruptions quickly.”

Predictive modeling, powered by real-time data, allows companies to anticipate risks such as transportation delays, supplier bankruptcies, or even environmental changes that could threaten supply lines. Panelists emphasized the importance of agility and real-time responsiveness. Companies that can quickly pivot in response to disruption — by rerouting shipments, finding alternative suppliers or adjusting production schedules — are better positioned to weather crises.

Supply chain finance was also identified as a key area where improvements are needed. Panelists pointed out that disruptions can strain liquidity for businesses, particularly smaller suppliers. Enhancing access to working capital through digital platforms, dynamic discounting and other financial tools can ensure the stability of supply chains during turbulent times.

Access to capital is critical, especially for smaller players in the supply chain who may not have the same level of resilience as larger firms, and PYMNTS last month analyzed how businesses in the transportation, shipping and logistics sector are turning to technologies like embedded supply chain finance to enhance resilience, drive efficiency, and ultimately transform their operations.

The post Managing Risk and Uncertainty Headline Commerce Department’s Supply Chain Summit appeared first on PYMNTS.com.

As shippers and carriers alike deal with spotty spot demand, inflation, and geopolitical tensions across key supply chain points, observers believe it’s time for a reset, one driven by digital innovation.

And with the announcement Monday (Aug. 19) of Freightos’ acquisition of Shipsta, a freight-tender procurement platform, it’s clear that businesses in the transportation, shipping and logistics sector are turning to technology — artificial intelligence (AI), real-time data analytics, and embedded supply chain finance — to enhance resilience, drive efficiency, and ultimately transform their operations.

Inflation, driven by a variety of factors including supply chain bottlenecks, labor shortages and energy price hikes, continues to squeeze profit margins for businesses worldwide. At the same time, demand remains unpredictable, with some regions experiencing slowdowns while others see surges in consumer spending. This uneven landscape makes it difficult for businesses to plan and execute their supply chain strategies effectively.

As stressors intensify, businesses must find ways to adapt and build more resilient supply chains that allow for managing the current challenges and position businesses for long-term success.

Read more: Moving Faster Than Ever: Real-Time Payments in the Transportation Industry

Transforming Supply Chain Management

As businesses navigate the global economy, embedded supply chain finance is emerging as a powerful tool for improving financial resilience and liquidity. Embedded finance refers to the integration of financial services — such as lending, payments and insurance — into non-financial platforms or ecosystems. In the context of supply chain finance, this means providing financial solutions directly within the supply chain management process.

One of the primary benefits of embedded supply chain finance is that it enables businesses to access working capital more efficiently. For example, suppliers can receive early payment for their invoices through integrated financing solutions, which are embedded within the procurement or logistics platforms they already use. This reduces the need for suppliers to rely on traditional financing methods, such as bank loans, which can be costly and time-consuming to secure.

Embedded finance also facilitates more flexible payment terms, which can help improve cash flow for both buyers and suppliers. By leveraging real-time data on buyer and supplier performance, embedded finance solutions can tailor payment terms to the specific needs of each party. For instance, a supplier with a strong track record of on-time deliveries might be offered more favorable payment terms, such as shorter payment cycles or lower interest rates on financing.

Similarly, embedded supply chain finance can help mitigate the financial risks associated with supply chain disruptions. For example, integrated insurance solutions can provide coverage for losses incurred due to delays, damage or other unforeseen events. This financial protection not only helps businesses recover more quickly from disruptions but also gives them greater confidence to invest in growth and innovation.

“We’re likely to see larger firms take up the embedded finance mantle, and smaller enterprises will follow suit,” Alan Koenigsberg, senior vice president and global head of Large & Middle Market Commercial Solutions, Working Capital and Embedded Finance at Visa, said to PYMNTS.

Read more: Halftime Report: 18 Payments Executives Share The Issues That Will Define The Rest of 2024

Future of Global Commerce

Amid a sea of uncertainty, real-time data is becoming an indispensable tool for businesses to improve their supply chain performance. The ability to access and analyze data in real time enables companies to make more informed decisions and respond more quickly to changing conditions.

By sharing data across the supply chain, businesses can improve communication and alignment, ensuring that all parties are working toward the same goals. This collaborative approach enhances efficiency and fosters stronger relationships with suppliers and other stakeholders, which can be a competitive advantage.

“The integration of AI, ML [machine learning], and vast computing power, coupled with an abundance of data, has transformed our approach to demand forecasting, inventory flow and cost optimization,” Parvez Musani, SVP, End-to-End Fulfillment, Walmart U.S. Omni Platforms and Tech, told PYMNTS. “Customers who can count on you during challenging times will reward you with their continued business. … Businesses must be able to adjust to disruptions quickly.”

With the ability to monitor supplier performance in real-time, businesses can quickly identify potential issues, such as production delays or quality problems, and take corrective action before they impact the broader supply chain. This proactive approach to risk management is particularly important in today’s uncertain environment, where even minor disruptions can have ripple effects.

Firms are also turning to AI to unlock insights from data. By analyzing data on inventory levels, lead times and demand patterns, AI algorithms can recommend optimal inventory levels that minimize the risk of stockouts while reducing carrying costs.

The post Embedded Finance and the Great Supply Chain Reset appeared first on PYMNTS.com.

These upgrades are built with the consumer-grade Oracle Redwood Design System and are designed to benefit procurement professionals, logistics managers, field service technicians and product managers, the company said in a Tuesday (Aug. 13) press release.

“With the latest Redwood user experience updates, Oracle Cloud SCM customers can increase the speed and accuracy of operations, reduce costs and improve overall efficiency,” Chris Leone, executive vice president, applications development at Oracle, said in the release.

One of the new enhancements to the platform is pricing rules for order management, which helps organizations automate discounts and increase the efficiency of sales promotions, according to the release.

Another enhancement is field parts inventory for maintenance, which helps service technicians manage parts inventory, reservations, transfers and returns while working in the field, the release said.

The platform also now includes a structures view for product management, which helps product managers analyze and validate bill of materials and component item information, and a guided task for mass component replacement, which helps organizations improve user efficiency and reduce potential errors when performing a mass replacement of a component on one or more item structures, per the release.

“Supply chain professionals are under pressure to move with speed and accuracy as they navigate numerous challenges in every step of the supply chain,” Leone said in the release. “In this high-stakes environment, a poor user experience can add to frustration, cause further delays and add costs.”

Retail and manufacturing companies are investing in digital technology to improve procurement operations and limit business disruptions caused by potential future supply chain breakdowns, according to “Digital Payments: Modernizing Procurement Processes,” a PYMNTS Intelligence and Corcentric collaboration.

The report found that 31% of retailers and 42% of manufacturers are already investing in upgrades to procurement technology, and that another 53% of retailers and 44% of manufacturers plan to do so.

In another recent upgrade, Oracle said in March that it added new generative artificial intelligence (AI) capabilities to its Fusion Cloud Applications Suite, embedding them in existing business workflows across finance, supply chain, human resources, sales, marketing and service.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

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The first project under the umbrella of this agreement is a $500 million facility in Mexico, the companies said in a Monday (Aug. 5) press release.

This project is the largest to date under IFC’s Global Supply Chain Finance (GSCF) program, which was launched in 2022 to help address supply chain finance gaps for small and medium-sized businesses (SMBs) and to expand access to sustainable supply chain finance, according to the release.

“The role of trade and supply chain finance in facilitating the goods and services essential for sustainability is paramount, and this program will enable suppliers in Mexico, some of whom may not traditionally be considered bankable, to receive such financing,” Nathalie Louat, global director of trade and supply chain finance at IFC, said in the release.

IFC has been working in Mexico to develop local credit infrastructure, including eInvoice financing, to introduce new reverse factoring and other asset-based financing products, and to strengthen the legal foundation of supply chain finance markets, per the release.

The institution hopes that the new program will support the continued growth of financing provided by Citi and other market participants, according to the release.

“It is our great pleasure to strengthen our collaboration with IFC in the area of sustainable supply chain finance,” Murat Demirel, head of financial resources and risk management, trade and working capital solutions at Citi, said in the release. “Mexico is a great start to launch this joint initiative, and Citi is looking forward to expanding this initiative into other emerging and frontier markets.”

Citi and IFC teamed up more than a decade ago and created IFC’s Global Trade Liquidity Program (GTLP) that debuted in 2009 and connects business to trade finance, PYMNTS reported in July 2020.

During the pandemic, the two organizations joined forces with an additional $800 million fund aimed at connecting SMBs in emerging markets to trade financing.

Ebru Pakcan, who was global head of trade business at Citi at the time and is now CEO, Middle East and Africa Cluster at the bank, told PYMNTS CEO Karen Webster in July 2020: “We’re living in a world where operational resilience is very important.”

The post Citi and IFC Partner on Sustainable Supply Chain Finance Program appeared first on PYMNTS.com.

This financing option, which allows companies to extend payment terms with vendors, gained popularity as it enables buyers to retain cash for longer periods while allowing companies to avoid debt on their balance sheets, the Wall Street Journal (WSJ) reported Wednesday (July 3).

AT&T, for instance, has been paying down its program as interest rates have climbed since the Federal Reserve initiated rate hikes two years ago. The telecom giant views this strategic move as a prudent decision to minimize financing costs, according to the report.

Similarly, Keurig Dr Pepper is currently renegotiating terms with vendors to counteract the impact of higher interest rates, the report said.

During the pandemic, supply-chain financing played a crucial role in helping companies maintain liquidity amid disruptions in manufacturing and logistics, per the report. These programs typically involve a third party, such as a bank, paying vendors before the scheduled due date, with the buyer reimbursing the bank at a later date. However, as interest rates have risen, vendors have seen larger discounts on their payments.

Despite the cutbacks by some large corporations, many companies still find supply-chain finance programs advantageous in a high-rate environment, according to the report. These programs offer buyers a means to bolster cash reserves without resorting to debt or loans, while vendors benefit from receiving payments more promptly.

Nonetheless, supply-chain financing has faced scrutiny due to its involvement in the collapse of investment firm Greensill Capital in 2021, the report said. Concerns have been raised regarding the potential volatility it introduces to a company’s cash flow and the associated liquidity risks.

In response to these concerns, the Financial Accounting Standards Board implemented rules mandating companies to disclose information about their supply-chain finance programs, including their size, per the report.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

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And when it comes to supply chain management, that old adage couldn’t be truer.

Fortunately for businesses, despite ongoing supply chain disruptions and operational uncertainties, there have never been more opportunities to move goods from point A to point B in the most efficient, effective, expedited and secure way possible.

In era marked by rapid technological advancements and unprecedented innovations, the supply chain landscape has undergone a significant transformation as a result of the interplay between solutions built leveraging artificial intelligence (AI), machine learning (ML) and large advances in the accessibility and cost of computing power.

“The culmination of those three things have revolutionized how we look at supply chain processes, all the way from demand forecasting to understanding at a granular level what customer needs are,” Parvez Musani, SVP, End-to-End Fulfillment, Walmart U.S. Omni Platforms and Tech, told PYMNTS.

“The integration of AI, ML, and vast computing power, coupled with an abundance of data, has transformed our approach to demand forecasting, inventory flow, and cost optimization,” Musani said.

Still, despite these technological advancements, certain elements of the supply chain have remained constant and immutable.

“What has remained consistent is the importance of agility and safety…and customers’ demands haven’t changed, either. They want things when they want them, where they want them, and how they want them,” added Musani.

And despite the proclivity for unexpected events and disruptions to throw a wrench into supply chain planning, it ultimately remains up to businesses to deliver against their customer base’s growing expectations around convenience — or see those customers switch to the competition.

Navigating the Evolution of the Modern Supply Chain

The integration of data from various sources, including IoT devices, customer interactions, weather patterns, social media trends and macroeconomic conditions, has revolutionized contemporary supply chain management by enabling firms to enhance inventory accuracy, reduce operational expenses, and accelerate network speed, ultimately improving the shopping experience for customers.

“The advent of smartphones has provided us with real-time data that enhances our visibility and allows us to react proactively,” Musani said, noting that this data integration is crucial for maintaining agility and meeting customer needs effectively.

He added that he envisions the ideal supply chain as highly integrated and data-driven, where “all the decision making is automated,” with resilience and reliability at its core.

Today, this vision translates into a seamless flow of information across the supply chain, built atop real-time visibility, and AI-driven decision-making. “We leverage AI to simulate potential disruptions and prepare proactive responses,” Musani said.

This proactive approach ensures that Walmart is well-prepared to handle disruptions, from natural disasters to sudden shifts in customer behavior, and Musani emphasized the importance of flexibility and nimbleness in supply chain operations when it comes to consistently delivering on promises made to customers.

“Customers who can count on you during challenging times will reward you with their continued business … Businesses must be able to adjust to disruptions quickly,” he said. “Having relief points in the supply chain, such as standing up new nodes or direct-to-customer inventory flows, can help manage surges in demand.”

Embracing Technology for Supply Chain Resiliency

And as AI and automation become integral to supply chain operations, the nature of the supply chain function itself is evolving.

“Jobs are becoming more fulfilling and high-skilled,” Musani said. “Automation is eliminating mundane tasks, allowing associates to focus on more impactful work.”

This shift not only enhances job satisfaction but also transforms roles into meaningful careers.

Walmart’s Emergency Operations Control, which includes representatives from every part of the organization, plays a vital role in disseminating information and coordinating responses. “By sharing live information and implementing actions based on our AI-driven simulations, we can effectively manage supply chain risks,” Musani said.

Looking ahead, Musani’s key takeaway for supply chain leaders is clear: embrace technology. “AI and ML are transforming supply chains into tech-powered ecosystems,” he said. “Automate decision-making, stay ahead of disruptions, and invest in a reliable, reconfigurable supply chain.”

As he put it, “The best times are yet to come for supply chain innovation.”

The post Walmart: AI Helps Create ‘Ready for Anything’ Supply Chains appeared first on PYMNTS.com.

The new SRM capabilities joins the product lifecycle management (PLM) and supply chain solutions already offered by Bamboo Rose, the company said in a Thursday (June 6) press release.

“We hear time and again from our 200-plus retailer customers that they can never be better than their worst performing suppliers,” Matt Stevens, CEO at Bamboo Rose, said in the release. “We also hear from our base of over 35,000 suppliers that they struggle to remain current with their retailer partners’ changing requirements or to clearly understand how well they’re performing against them.”

Bamboo’s Rose’s new SRM capabilities are designed to solve these challenges by providing a more streamlined and collaborative workflow and interface for retailers’ management of their supplier interactions and data, according to the release.

These capabilities also help retailers solve issues around data transparency and integrity, collaboration and onboarding processes, the release said.

The SRM provides near real-time dashboards and reports that enable true collaboration, tools to track communications, a knowledge base for suppliers, and proactive engagement tools that help maintain accurate compliance records, per the release.

“Our platform lives at the epicenter of this business-critical collaboration which in turn enables the tightly integrated next-level SRM to empower both retailers and suppliers to stay in lockstep with each other to deliver better operational results across the board,” Stevens said in the release.

Bamboo Rose saw during the supply chain troubles that started with the pandemic that buyers and suppliers alike learned that what matters during supply chain troubles is partnerships, PYMNTS reported in December 2021.

When participants share information and fulfill commitments, everyone prospers. Conversely, buyers won’tsoon forget a supplier that unilaterally cancels its contracts.

PYMNTS Intelligence has found that businesses across the board have upped their investments in technologies to support their procurement processes. In addition, many businesses that have been slow to invest now plan to increase their spending on these solutions.

These businesses expect their investments to pay off by ensuring that these systems improve the efficiency of their processes for purchasing goods and services during both normal business conditions and disruptions, according to “Digital Payments: Modernizing Procurement Processes,” a PYMNTS Intelligence and Corcentric collaboration.

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