This document discusses how combining logistics and financing can enhance profitability in supply chains. It argues that sharing supply chain information with financiers could lower financing costs by reducing risks, and that coordinating financing across supply chain participants could eliminate inefficiencies. The author proposes partnerships between logistics providers, customers, and financial services to leverage supply chain information and physical control of inventory to capture value from accelerating payments and introducing insurance policies. This could generate revenue from fees while lowering overall financing costs in the supply chain.
A Systematic Approach to Optimizing CollateralCognizant
The document discusses establishing a robust collateral management and optimization infrastructure. It outlines that creating centralized collateral management can achieve savings of $1-4 billion annually by eliminating silos. Currently, operational silos and lack of standardized data hinder optimal collateral usage. The document recommends a three-pronged approach: 1) create a central agency to improve efficiency by 7-10%, 2) optimize portfolios with analytical tools to gain 5-7% efficiency, and 3) use portfolio transformation techniques to address remaining shortfalls.
The document discusses trends in the global trade finance market. It notes that earnings power is shifting to Asia and the middle market segment. Two key trends are highlighted: 1) Asia is becoming the global hub for trade finance, driven by strong growth in intra-Asian trade and exports to the US and Europe. Over the next few years, Asia's importance is expected to further increase and a new Asian revenue pool of over $2.5 billion is projected to emerge. 2) Globalization has reached the European middle market. While consolidation in the industry is expected, credit capacity has now become critical for business success, allowing mid-tier competitors to compete.
SUPPLY CHAIN FINANCE IN THE CONTEXT OF WORKING CAPITAL MANAGEMENTIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd., published a special report, Supply Chain Finance in the Context of Working Capital Management .
The report, published in conjunction with BCR Publishing, covers industry structure, risk management, financing and operational aspects, the way companies viewed the product, as well as trade offs between dynamic discounting and supply chain finance products.
US Retail Banks have enjoyed several years of strong profitability and positive revenue growth. However, we see numerous headwinds to growth due to demographic, competitive, and consumer trends. While many of these trends will persist well into the future, 2019 will be a pivotal year. The attached white paper provides insights into the growth challenge and creative solutions for banks can act to accelerate their growth.
Supply chain finance (SCF) helps address volatility in demand and instability in the supply chain. While SCF seems like a simple solution, effectively implementing SCF programs poses challenges. Key challenges include convincing suitable suppliers to participate, navigating existing supplier contracts, and improving internal invoice approval processes which can delay supplier payments. For SCF programs to truly benefit suppliers, corporations need to address inefficiencies in their own processes that hinder quick supplier payments.
This document provides an overview of supply chain finance (SCF) in India, including:
- SCF offerings like vendor finance and channel finance, how they work, and their advantages.
- The SCF market in India is approximately INR 650 billion, with major players like State Bank of India, HDFC Bank, and IndusInd Bank.
- Challenges to SCF adoption in India include available capital, lack of systems/infrastructure, low pricing, and supplier/dealer onboarding over large geographies.
- Opportunities for growth include leveraging e-commerce, taking an integrated approach across supply chains, developing online platforms, and expanding to new industries.
Critical Mission Support Achieved through Custom Procurement SolutionsDoretta
Federal government procurement policies are complex, stringent and increasingly require more transparency. Because government services are funded by taxpayer dollars, due diligence is a necessary component to ensure optimal and appropriate use of available funding. In recent years, the Department of Defense (DoD) has made significant progress in adopting custom purchase and payment programs to help streamline complex procurement of commercial products and services. This paper will address the rationale and advantages behind custom purchase and payment program adoption and the options that should be considered to achieve further cost saving enhancements. It will address closed-loop, private procurement and payment solutions and why they are advantageous over traditional off-the-shelf solutions in specific industries in the domestic and overseas marketplace.
Critical Mission Support Achieved through Custom Procurement SolutionsMulti Service
Federal government procurement policies are complex, stringent and increasingly require more transparency. Because government services are funded by taxpayer dollars, due diligence is a necessary component to ensure optimal and appropriate use of available funding. In recent years, the Department of Defense (DoD) has made significant progress in adopting custom purchase and payment programs to help streamline complex procurement of commercial products and services. This paper will address the rationale and advantages behind custom purchase and payment program adoption and the options that should be considered to achieve further cost saving enhancements. It will address closed-loop, private procurement and payment solutions and why they are advantageous over traditional off-the-shelf solutions in specific industries in the domestic and overseas marketplace.
A Systematic Approach to Optimizing CollateralCognizant
The document discusses establishing a robust collateral management and optimization infrastructure. It outlines that creating centralized collateral management can achieve savings of $1-4 billion annually by eliminating silos. Currently, operational silos and lack of standardized data hinder optimal collateral usage. The document recommends a three-pronged approach: 1) create a central agency to improve efficiency by 7-10%, 2) optimize portfolios with analytical tools to gain 5-7% efficiency, and 3) use portfolio transformation techniques to address remaining shortfalls.
The document discusses trends in the global trade finance market. It notes that earnings power is shifting to Asia and the middle market segment. Two key trends are highlighted: 1) Asia is becoming the global hub for trade finance, driven by strong growth in intra-Asian trade and exports to the US and Europe. Over the next few years, Asia's importance is expected to further increase and a new Asian revenue pool of over $2.5 billion is projected to emerge. 2) Globalization has reached the European middle market. While consolidation in the industry is expected, credit capacity has now become critical for business success, allowing mid-tier competitors to compete.
SUPPLY CHAIN FINANCE IN THE CONTEXT OF WORKING CAPITAL MANAGEMENTIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd., published a special report, Supply Chain Finance in the Context of Working Capital Management .
The report, published in conjunction with BCR Publishing, covers industry structure, risk management, financing and operational aspects, the way companies viewed the product, as well as trade offs between dynamic discounting and supply chain finance products.
US Retail Banks have enjoyed several years of strong profitability and positive revenue growth. However, we see numerous headwinds to growth due to demographic, competitive, and consumer trends. While many of these trends will persist well into the future, 2019 will be a pivotal year. The attached white paper provides insights into the growth challenge and creative solutions for banks can act to accelerate their growth.
Supply chain finance (SCF) helps address volatility in demand and instability in the supply chain. While SCF seems like a simple solution, effectively implementing SCF programs poses challenges. Key challenges include convincing suitable suppliers to participate, navigating existing supplier contracts, and improving internal invoice approval processes which can delay supplier payments. For SCF programs to truly benefit suppliers, corporations need to address inefficiencies in their own processes that hinder quick supplier payments.
This document provides an overview of supply chain finance (SCF) in India, including:
- SCF offerings like vendor finance and channel finance, how they work, and their advantages.
- The SCF market in India is approximately INR 650 billion, with major players like State Bank of India, HDFC Bank, and IndusInd Bank.
- Challenges to SCF adoption in India include available capital, lack of systems/infrastructure, low pricing, and supplier/dealer onboarding over large geographies.
- Opportunities for growth include leveraging e-commerce, taking an integrated approach across supply chains, developing online platforms, and expanding to new industries.
Critical Mission Support Achieved through Custom Procurement SolutionsDoretta
Federal government procurement policies are complex, stringent and increasingly require more transparency. Because government services are funded by taxpayer dollars, due diligence is a necessary component to ensure optimal and appropriate use of available funding. In recent years, the Department of Defense (DoD) has made significant progress in adopting custom purchase and payment programs to help streamline complex procurement of commercial products and services. This paper will address the rationale and advantages behind custom purchase and payment program adoption and the options that should be considered to achieve further cost saving enhancements. It will address closed-loop, private procurement and payment solutions and why they are advantageous over traditional off-the-shelf solutions in specific industries in the domestic and overseas marketplace.
Critical Mission Support Achieved through Custom Procurement SolutionsMulti Service
Federal government procurement policies are complex, stringent and increasingly require more transparency. Because government services are funded by taxpayer dollars, due diligence is a necessary component to ensure optimal and appropriate use of available funding. In recent years, the Department of Defense (DoD) has made significant progress in adopting custom purchase and payment programs to help streamline complex procurement of commercial products and services. This paper will address the rationale and advantages behind custom purchase and payment program adoption and the options that should be considered to achieve further cost saving enhancements. It will address closed-loop, private procurement and payment solutions and why they are advantageous over traditional off-the-shelf solutions in specific industries in the domestic and overseas marketplace.
Critical Mission Support Achieved Through Custom Procurement SolutionsJean Gleason
Federal government procurement policies are complex, stringent and increasingly require more transparency. Because government services are funded by taxpayer dollars, due diligence is a necessary component to ensure optimal and appropriate use of available funding. In recent years, the Department of Defense (DoD) has made significant progress in adopting custom purchase and payment programs to help streamline complex procurement of commercial products and services. This paper will address the rationale and advantages behind custom purchase and payment program adoption and the options that should be considered to achieve further cost saving enhancements. It will address closed-loop, private procurement and payment solutions and why they are advantageous over traditional off-the-shelf solutions in specific industries in the domestic and overseas marketplace.
Portfolio of Buyer-Supplier Exchange Relationships in an Online Marketplace f...Eric van Heck
This document summarizes a study on portfolios of exchange relationships that buyers form with suppliers in an online marketplace for IT services. The study explores how buyers organize their supplier networks by analyzing patterns in their usage of auction vs. negotiation mechanisms, types of supplier relationships, and preferences for certain suppliers over multiple transactions. The study aims to develop a taxonomy of buyers' portfolio configurations and relate them to theoretical perspectives on how IT shapes economic exchange relationships, in order to provide a richer picture than previous studies that predicted uniform relationship types. Key dimensions for analyzing portfolio configurations include the extent of arm's-length vs. close supplier relationships, the usage of auction vs. negotiation mechanisms, and the complexity of IT projects involved in the transactions. The study also
Fundtech white paper, e invoicing provides new avenues for creditFriso de Jong
1) Electronic invoicing enables new forms of supply chain financing by providing banks visibility into trade transactions and relationships.
2) E-invoicing automates supply chain financing structures like factoring and invoice discounting, improving processes and risk analysis.
3) Integrating e-invoicing with supply chain financing provides opportunities for new financing products focused on payables and receivables.
- Supply chain finance aims to optimize the availability and cost of capital within buyer-supplier supply chains. However, financing supply chains is challenging due to the involvement of smaller companies that have higher capital costs and must deal with larger companies extending payment terms.
- Providing flexible payment options to customers can increase sales, but it creates financial burdens for sellers. Larger companies have significant credit, billing and collection costs, while smaller companies rely on expensive capital to finance extended payment terms.
- Understanding these challenges is important as supply chains involve various company types delivering products to consumers, both domestically and globally, with trillions in trade payables outstanding.
The article compares alternate methods for calculating CVA capital charges under Basel III. It discusses the standardized formula approach and advanced Monte Carlo simulation approach. The standardized approach can be interpreted as a 1-year 99% CVA VaR calculation under normal assumptions. The advanced approach requires calculating 10-day 99% CVA VaR over a 1-year period and stressed 1-year period. Test results on sample portfolios show the advanced approach provides significantly more capital relief when hedges are used compared to the standardized approach. The difference in capital charges between methods depends on the specific portfolio.
Explaining the determinants of trade credit an empirical study in the case of...Alexander Decker
This document summarizes a research study that investigated the determinants of trade credit for 403 unlisted Saudi Arabian firms from 2000 to 2004. The study found that trade credit accounts for a large portion of liabilities for these firms. Using a panel data estimation technique, the study tested hypotheses related to five determinants of trade credit: availability of financial resources, firm creditworthiness, profitability, liquidity, and growth opportunities. The results showed that trade credit is negatively related to traditional debt sources but positively related to firm size, liquidity measures like current assets, and growth. Trade credit was found to be negatively related to firm age and profitability, consistent with hypotheses.
In the last few years, the financial markets have undergone dramatic change. While some of this is down to natural evolution, much of the change can be directly attributed to new rules introduced in the wake of the 2007 crisis. Regulators, legislators and central bank governors have been determined to avert another bubble bursting or an unexpected event that could threaten markets. Lawmakers have targeted key financial practices for reform, radically altering the expectations and behavior of industry participants. The combination of the Dodd-Frank Act, European Markets Infrastructure Regulation (EMIR), MiFID ll and Basel lll signify the biggest regulatory change in decades. These reforms have resulted in major change to how financial products are traded, settled, collateralized and reported, resulting in deep and ongoing structural changes to the markets.
There is no doubt that these new rules are directly impacting buy-side firms — be they asset managers, hedge funds, insurance companies or pension funds. But while the changes have certainly brought challenges, they have also brought opportunities. Firms that can proactively evaluate structural and operational dislocations in the marketplace and tailor business models to leverage the opportunities while addressing the challenges will be in the best position to stand apart from their competitors. Revised business models call for revisions to supporting processes and systems. Buy-side firms should look to re-architect their processes and technology infrastructure, with a goal to strengthen risk control and oversight, enhance transparency and improve efficiency of front-to-back office control functions.
The credit crisis, and the regulatory response it spawned have fundamentally reshaped financial markets for buy-side firms. But while the changes have brought about challenges, they have also ushered in opportunities. The key to success will be the speed with which firms are able to understand the changing marketplace and adapt their business models to align with the changes.
COVID-19: Sustaining Business in All Scenarios: A New Lens on Bank Credit Ris...Boston Consulting Group
Risk drivers specifically related to the COVID19 outbreak are not currently directly captured by credit ratings systems. It is therefore critical for banks to ensure they understand their positions and prepare to take mitigating action.
Authors: Matteo Coppola, Lorenzo Fantini, Filippo Fioravanti
Submission to commission on banking standards sdj 08 02 13 final Simon Deane-Johns
This submission discusses the crisis in the UK retail finance market and the growth of alternative finance models. It notes that small businesses face a funding gap of up to £59 billion, while over 90% rely on four major banks for financing. New models like peer-to-peer lending, supply chain finance, and marketplace finance are emerging to fill this gap. Peer-to-peer platforms allow individuals and small businesses to directly agree loan and investment terms without pre-packaged bank products. Regulatory barriers currently favor traditional banks over alternative finance providers. Reforms are needed to level the playing field.
2016-05-31 Practico Legal Business ReportJames Barrett
The document discusses litigation costs and methods for controlling costs. It notes that while time-based billing remains dominant, budgeting is becoming increasingly important. A new method called J-codes provides a standardized way to categorize legal work and costs that many believe will provide more transparency and help control costs. The report is based on a survey that found openness to alternative billing methods but continued use of time-based billing due to its transparency. J-codes in particular received interest from those aware of them for improving budget monitoring and reducing disputes.
The document discusses interchange fees, which are paid to credit card issuers for cards processed by merchants each month. It explains that interchange fees, along with association fees paid to credit card networks and discount fees paid to processors, make up the various fees deducted from merchant statements. The majority of these fees are interchange fees, which are set by credit card networks and non-negotiable for merchants. The document provides examples of interchange and association fees for Visa, MasterCard and Discover transactions.
The document proposes reformulating laws of fluid mechanics into cash flow mechanics to measure financial market liquidity and illiquidity. It aims to quantify different degrees of liquidity that may lead to turbulence or crises. The approach models financial cash flows and rates of return using concepts like mass, momentum, and energy from physics. This could help analyze dynamics modern markets don't capture with static models. While unconventional, the author believes it may provide useful tools to better understand liquidity risks.
The document provides a guide to licensing SAP software products. It discusses the core elements of SAP's licensing model, which includes software licenses and associated maintenance and support services. The licenses are offered as either package licenses based on business metrics or named user licenses for individual users. The modular structure of SAP licenses allows customers to scale their solutions as their business needs change. Flexible payment options and alternative licensing models are also available.
This document is an order from the Federal Communications Commission regarding GTE Telephone Operating Companies' tariff filing for its ADSL Solutions-ADSL Service. The FCC finds that this service, which provides high-speed internet access to end users, is an interstate service that is properly tariffed at the federal level. The FCC also rejects arguments that the possibility of a price squeeze warrants deferring regulation of DSL services to the states. However, the order emphasizes that it is only addressing the jurisdictional issues related to GTE's specific ADSL tariff filing, and not broader issues regarding reciprocal compensation between carriers.
"Multichannel Video Programming Distributor” or “MVPD” means a Person providing multiple channels of video programming to subscribers in the United States for which a fee is charged, by any of various methods including, but not limited to, cable, satellite master
antenna television, multichannel multipoint distribution, direct-to-home satellite (C-band, Kuband, direct broadcast satellite), ultra high-frequency microwave systems (sometimes called LMDS), open video systems, or the facilities of common carrier telephone companies or their affiliates, as well as Buying Groups or Purchasing Agents of all such Persons.
This document is a consulting agreement between Accelerated Sciences Corp. and Medior Entertainment Group. Accelerated Sciences owes Medior $140,000 for prior services and retains Medior as a non-exclusive advisor for 4 months. The agreement outlines how the $140,000 will be paid based on financing amounts Accelerated Sciences receives, with full payment due by June 30, 2002 if certain financing thresholds are not met. It also covers expense reimbursement, termination terms, and confidentiality.
The document discusses plans for a hybrid Lancia Aurelia vehicle powered by an Oldsmobile Aurora engine in exchange for negotiating a switch from Honda to Oldsmobile for Indy races. It also mentions designs for Maserati and Fiat vehicles to compete with Ferrari models and discusses the CEO of a potential Lancia-Chrysler merger.
The document discusses the results of a study on the impact of climate change on wheat production. Researchers found that higher temperatures and changing precipitation patterns will significantly reduce wheat yields across major wheat-producing regions by 2050. The study concludes that efforts must be made to develop wheat varieties that can tolerate hotter and drier conditions to ensure future global food security as the climate continues to warm.
3171 motorious letter to wole fayemi forwarding notice of abandonmentDino, llc
This letter from Linda S. Chan at the law firm Katten informs Mr. Wole Fayemi that his patent application No. 09/854,347 for a system and method of mass-customizing multi-component articles has been abandoned. The letter notes that if the abandonment was unintentional or unavoidable, the application may be able to be revived and recommends Mr. Fayemi discuss this with his patent attorney. An enclosure is also included with the letter.
Critical Mission Support Achieved Through Custom Procurement SolutionsJean Gleason
Federal government procurement policies are complex, stringent and increasingly require more transparency. Because government services are funded by taxpayer dollars, due diligence is a necessary component to ensure optimal and appropriate use of available funding. In recent years, the Department of Defense (DoD) has made significant progress in adopting custom purchase and payment programs to help streamline complex procurement of commercial products and services. This paper will address the rationale and advantages behind custom purchase and payment program adoption and the options that should be considered to achieve further cost saving enhancements. It will address closed-loop, private procurement and payment solutions and why they are advantageous over traditional off-the-shelf solutions in specific industries in the domestic and overseas marketplace.
Portfolio of Buyer-Supplier Exchange Relationships in an Online Marketplace f...Eric van Heck
This document summarizes a study on portfolios of exchange relationships that buyers form with suppliers in an online marketplace for IT services. The study explores how buyers organize their supplier networks by analyzing patterns in their usage of auction vs. negotiation mechanisms, types of supplier relationships, and preferences for certain suppliers over multiple transactions. The study aims to develop a taxonomy of buyers' portfolio configurations and relate them to theoretical perspectives on how IT shapes economic exchange relationships, in order to provide a richer picture than previous studies that predicted uniform relationship types. Key dimensions for analyzing portfolio configurations include the extent of arm's-length vs. close supplier relationships, the usage of auction vs. negotiation mechanisms, and the complexity of IT projects involved in the transactions. The study also
Fundtech white paper, e invoicing provides new avenues for creditFriso de Jong
1) Electronic invoicing enables new forms of supply chain financing by providing banks visibility into trade transactions and relationships.
2) E-invoicing automates supply chain financing structures like factoring and invoice discounting, improving processes and risk analysis.
3) Integrating e-invoicing with supply chain financing provides opportunities for new financing products focused on payables and receivables.
- Supply chain finance aims to optimize the availability and cost of capital within buyer-supplier supply chains. However, financing supply chains is challenging due to the involvement of smaller companies that have higher capital costs and must deal with larger companies extending payment terms.
- Providing flexible payment options to customers can increase sales, but it creates financial burdens for sellers. Larger companies have significant credit, billing and collection costs, while smaller companies rely on expensive capital to finance extended payment terms.
- Understanding these challenges is important as supply chains involve various company types delivering products to consumers, both domestically and globally, with trillions in trade payables outstanding.
The article compares alternate methods for calculating CVA capital charges under Basel III. It discusses the standardized formula approach and advanced Monte Carlo simulation approach. The standardized approach can be interpreted as a 1-year 99% CVA VaR calculation under normal assumptions. The advanced approach requires calculating 10-day 99% CVA VaR over a 1-year period and stressed 1-year period. Test results on sample portfolios show the advanced approach provides significantly more capital relief when hedges are used compared to the standardized approach. The difference in capital charges between methods depends on the specific portfolio.
Explaining the determinants of trade credit an empirical study in the case of...Alexander Decker
This document summarizes a research study that investigated the determinants of trade credit for 403 unlisted Saudi Arabian firms from 2000 to 2004. The study found that trade credit accounts for a large portion of liabilities for these firms. Using a panel data estimation technique, the study tested hypotheses related to five determinants of trade credit: availability of financial resources, firm creditworthiness, profitability, liquidity, and growth opportunities. The results showed that trade credit is negatively related to traditional debt sources but positively related to firm size, liquidity measures like current assets, and growth. Trade credit was found to be negatively related to firm age and profitability, consistent with hypotheses.
In the last few years, the financial markets have undergone dramatic change. While some of this is down to natural evolution, much of the change can be directly attributed to new rules introduced in the wake of the 2007 crisis. Regulators, legislators and central bank governors have been determined to avert another bubble bursting or an unexpected event that could threaten markets. Lawmakers have targeted key financial practices for reform, radically altering the expectations and behavior of industry participants. The combination of the Dodd-Frank Act, European Markets Infrastructure Regulation (EMIR), MiFID ll and Basel lll signify the biggest regulatory change in decades. These reforms have resulted in major change to how financial products are traded, settled, collateralized and reported, resulting in deep and ongoing structural changes to the markets.
There is no doubt that these new rules are directly impacting buy-side firms — be they asset managers, hedge funds, insurance companies or pension funds. But while the changes have certainly brought challenges, they have also brought opportunities. Firms that can proactively evaluate structural and operational dislocations in the marketplace and tailor business models to leverage the opportunities while addressing the challenges will be in the best position to stand apart from their competitors. Revised business models call for revisions to supporting processes and systems. Buy-side firms should look to re-architect their processes and technology infrastructure, with a goal to strengthen risk control and oversight, enhance transparency and improve efficiency of front-to-back office control functions.
The credit crisis, and the regulatory response it spawned have fundamentally reshaped financial markets for buy-side firms. But while the changes have brought about challenges, they have also ushered in opportunities. The key to success will be the speed with which firms are able to understand the changing marketplace and adapt their business models to align with the changes.
COVID-19: Sustaining Business in All Scenarios: A New Lens on Bank Credit Ris...Boston Consulting Group
Risk drivers specifically related to the COVID19 outbreak are not currently directly captured by credit ratings systems. It is therefore critical for banks to ensure they understand their positions and prepare to take mitigating action.
Authors: Matteo Coppola, Lorenzo Fantini, Filippo Fioravanti
Submission to commission on banking standards sdj 08 02 13 final Simon Deane-Johns
This submission discusses the crisis in the UK retail finance market and the growth of alternative finance models. It notes that small businesses face a funding gap of up to £59 billion, while over 90% rely on four major banks for financing. New models like peer-to-peer lending, supply chain finance, and marketplace finance are emerging to fill this gap. Peer-to-peer platforms allow individuals and small businesses to directly agree loan and investment terms without pre-packaged bank products. Regulatory barriers currently favor traditional banks over alternative finance providers. Reforms are needed to level the playing field.
2016-05-31 Practico Legal Business ReportJames Barrett
The document discusses litigation costs and methods for controlling costs. It notes that while time-based billing remains dominant, budgeting is becoming increasingly important. A new method called J-codes provides a standardized way to categorize legal work and costs that many believe will provide more transparency and help control costs. The report is based on a survey that found openness to alternative billing methods but continued use of time-based billing due to its transparency. J-codes in particular received interest from those aware of them for improving budget monitoring and reducing disputes.
The document discusses interchange fees, which are paid to credit card issuers for cards processed by merchants each month. It explains that interchange fees, along with association fees paid to credit card networks and discount fees paid to processors, make up the various fees deducted from merchant statements. The majority of these fees are interchange fees, which are set by credit card networks and non-negotiable for merchants. The document provides examples of interchange and association fees for Visa, MasterCard and Discover transactions.
The document proposes reformulating laws of fluid mechanics into cash flow mechanics to measure financial market liquidity and illiquidity. It aims to quantify different degrees of liquidity that may lead to turbulence or crises. The approach models financial cash flows and rates of return using concepts like mass, momentum, and energy from physics. This could help analyze dynamics modern markets don't capture with static models. While unconventional, the author believes it may provide useful tools to better understand liquidity risks.
The document provides a guide to licensing SAP software products. It discusses the core elements of SAP's licensing model, which includes software licenses and associated maintenance and support services. The licenses are offered as either package licenses based on business metrics or named user licenses for individual users. The modular structure of SAP licenses allows customers to scale their solutions as their business needs change. Flexible payment options and alternative licensing models are also available.
This document is an order from the Federal Communications Commission regarding GTE Telephone Operating Companies' tariff filing for its ADSL Solutions-ADSL Service. The FCC finds that this service, which provides high-speed internet access to end users, is an interstate service that is properly tariffed at the federal level. The FCC also rejects arguments that the possibility of a price squeeze warrants deferring regulation of DSL services to the states. However, the order emphasizes that it is only addressing the jurisdictional issues related to GTE's specific ADSL tariff filing, and not broader issues regarding reciprocal compensation between carriers.
"Multichannel Video Programming Distributor” or “MVPD” means a Person providing multiple channels of video programming to subscribers in the United States for which a fee is charged, by any of various methods including, but not limited to, cable, satellite master
antenna television, multichannel multipoint distribution, direct-to-home satellite (C-band, Kuband, direct broadcast satellite), ultra high-frequency microwave systems (sometimes called LMDS), open video systems, or the facilities of common carrier telephone companies or their affiliates, as well as Buying Groups or Purchasing Agents of all such Persons.
This document is a consulting agreement between Accelerated Sciences Corp. and Medior Entertainment Group. Accelerated Sciences owes Medior $140,000 for prior services and retains Medior as a non-exclusive advisor for 4 months. The agreement outlines how the $140,000 will be paid based on financing amounts Accelerated Sciences receives, with full payment due by June 30, 2002 if certain financing thresholds are not met. It also covers expense reimbursement, termination terms, and confidentiality.
The document discusses plans for a hybrid Lancia Aurelia vehicle powered by an Oldsmobile Aurora engine in exchange for negotiating a switch from Honda to Oldsmobile for Indy races. It also mentions designs for Maserati and Fiat vehicles to compete with Ferrari models and discusses the CEO of a potential Lancia-Chrysler merger.
The document discusses the results of a study on the impact of climate change on wheat production. Researchers found that higher temperatures and changing precipitation patterns will significantly reduce wheat yields across major wheat-producing regions by 2050. The study concludes that efforts must be made to develop wheat varieties that can tolerate hotter and drier conditions to ensure future global food security as the climate continues to warm.
3171 motorious letter to wole fayemi forwarding notice of abandonmentDino, llc
This letter from Linda S. Chan at the law firm Katten informs Mr. Wole Fayemi that his patent application No. 09/854,347 for a system and method of mass-customizing multi-component articles has been abandoned. The letter notes that if the abandonment was unintentional or unavoidable, the application may be able to be revived and recommends Mr. Fayemi discuss this with his patent attorney. An enclosure is also included with the letter.
[THE FRAY: Isaac Slade][VH-1][AmericanExpress]:= ' Save The Music Foundation 'Dino, llc
This document summarizes an undergraduate research program focused on automotive manufacturing systems at Auburn University. The program hosts 10 engineering students each summer for 8-week research internships. Students work on projects related to the automotive industry under faculty mentors. The goals are to provide research experience and encourage students to pursue advanced degrees and careers in engineering. Auburn University conducts extensive automotive research collaborating with industry partners due to the growth of automotive manufacturing in Alabama. The program offers training and visits to local automotive companies. Student projects have addressed topics like optimizing automotive part inspection processes and analyzing human fatigue in manufacturing tasks.
This document discusses the role of competition policy in promoting growth and jobs in the EU. It argues that competition policy can contribute substantially to the EU's growth and jobs strategy by removing market restrictions and excessive market power. The document outlines how the Commission is taking a more proactive approach to competition policy by advocating for competitive markets, conducting sector inquiries, and screening legislation for potential competition issues. It also discusses the Commission's tools to intervene in national markets and address international competition issues.
This document discusses measuring returns on corporate research and development (R&D) spending. It begins by providing context on the European Union's goals to increase R&D spending to boost competitiveness. It then reviews prior literature on measuring R&D returns and discusses challenges in doing so given R&D's characteristics as an intangible investment with high uncertainty. The document outlines some accounting-based approaches to measuring firm-level R&D returns and what relationships might be expected between various performance metrics and R&D intensity. It presents results from estimations of relationships between R&D intensity and accounting measures of performance using US firm data.
This document discusses alternative approaches to reciprocal tariff liberalization in international trade negotiations. It describes how negotiations under the WTO allow flexibility in reducing tariffs on a product-by-product or general formula basis. Sectoral approaches are also discussed, including negotiating access to certain sectors or negotiating bilateral access across sectors. While sectoral approaches can efficiently reduce high tariffs, they may favor developed countries' export sectors and result in an initially lower level of welfare.
This document discusses the types of inter partes proceedings before the Trademark Trial and Appeal Board, including oppositions, cancellations, interferences, and concurrent use proceedings. It provides details on who may file an opposition or petition to cancel a trademark registration and the required timing and procedures for doing so. Key points covered include the difference between opposing a mark's registration versus petitioning to cancel a registered mark, as well as the fees, forms, and other requirements for commencing these proceedings.
This document summarizes a research paper that analyzes decentralized supply chains with competing retailers under demand uncertainty. It investigates what types of contractual arrangements between suppliers and retailers are needed for the decentralized chain to perform as well as a centralized one. The document outlines models of supply chains with single and multiple non-competing retailers, and indicates that coordination can be achieved through linear price discount sharing schemes between the supplier and retailers. It also discusses models of supply chains with competing retailers and the additional complexities around coordination that arise from retailers' prices impacting each other's demands and profits.
The document provides a price list for the Alfa Romeo MiTo and Giulietta models across various European countries as of January 1, 2011. It lists the recommended retail price in local currency and euros for each country, along with price indices compared to Slovenia and information on standard features and options. Major differences are seen in prices across countries, with prices highest in Finland, Sweden, the Netherlands and lowest in Eastern European nations.
Distribution Finance- article by Igor Zax at Trade and Forfeighting ReviewIgor Zax (Zaks)
Distribution finance, also known as floor plan financing or inventory finance, provides financing to distributors and retailers for their inventory. While traditionally focused in the US, it is expanding globally. The document discusses how supply chain finance (SCF) techniques could modernize distribution finance programs by separating credit and performance risk and leveraging credit insurance. This could make distribution finance programs more efficient and accessible to more financial institutions.
This document provides an agenda for the "Effective Supply Chain Finance" conference happening on June 3, 2015 in Amsterdam. The agenda includes sessions on supply chain finance regulations, using SCF as part of working capital strategies, engaging procurement and treasury teams, financing capital expenditures through SCF, and technologies that could enable future SCF programs. The conference aims to help treasurers and procurement professionals learn how to enhance working capital, increase liquidity, and mitigate risks through effective supply chain finance programs.
The report aims at stimulating thoughts and discussions on Supply Chain Finance topic and it doesn’t intent to give a professional advise to your company, taking into account that each Business has specific requirements and goals.
This document discusses logistics costs and performance measurement. It begins by explaining how return on investment (ROI) is calculated and how improving margins or asset turnover can increase ROI. It then discusses how logistics can impact various financial metrics like the income statement, balance sheet, cash flow and shareholder value. Effective logistics management can improve revenue, reduce costs, increase fixed capital and working capital efficiency, and minimize taxes to create shareholder value. The document emphasizes that traditional cost accounting methods are often inadequate for analyzing logistics costs and performance across the supply chain. It argues for adopting cost accounting methods tailored to logistics in order to identify opportunities for cost reductions and trade-offs.
Mercer Capital's Bank Watch | January 2020 | Community Bank Valuation Part 5Mercer Capital
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Combining logistics with financing for enhanced profitability
1. Combining Logistics with Financing for Enhanced Print this paper
Profitability
(4/15/1999) Ascet Volume 1 Send as email
By Richard Palmieri, Credit Suisse First Boston
The traditional view of supply chain management is that real savings come
from the substitution of information for inventory and the integrated
management of both the physical product and information flows. However,
the financial flow, perhaps even more than the physical and information
flows, holds substantial promise for cost reduction. The hidden truth is that
the costs to finance products moving through the supply chain, over 4% of
GDP in 1998, approach the costs associated with transportation and
distribution. The financial opportunity for the owners of supply chain
information to share in the revenue streams associated with the financing of
that product often far exceeds the cost reduction opportunities in
transportation and distribution operations.
INTRODUCTION
The goal of successful supply chain management is to minimize mass and time. To do this
effectively, one must be able to measure the costs associated with not only the physical
movement of the product and the associated information requirements, but also the costs
associated with the inventory: financing, taking credit risks upon sale, supporting trade credit and
the like.
Because few companies have a clear idea of this "total" cost, they tend to target the more
tangible elements of logistics costs, such as transportation and warehousing. As with every
service, however, there is a point at which costs can no longer be reduced without affecting
service quality. Many feel that if the transportation industry isn't there now, it's close. Meanwhile,
while many conclude that the reduction in inventory carrying costs over the last several years
from about 5.4% of GDP in 1990 to just over 4% last year is due to great strides in reducing
inventory levels, the facts show that a marked reduction in interest rates over the same time
frame has driven the majority of the benefit. In short, cost reducers, or logistics companies
seeking new sources of revenue, need a new, more tangible target. When one considers the total
dollar value of goods shipped through third party providers, the value created by reducing the
financing cost by even a few basis points is far greater than any cost savings possible from
traditional transportation and warehousing targets.
Current Situation
Three phenomena, none of which are likely to go away anytime soon, are driving this cost
reduction opportunity. The first two, the failure of supply chain information owners to share and
coordinate shipment status and product availability data with financiers, drives financing costs
artificially higher; the third, the relentless pressure on suppliers in virtually every industry to
accept longer and longer trade terms to enhance their customers' return on invested capital
(ROIC) and return on assets (ROA) comes from Wall Street pressure: when managing ROA, if
you can't up the "R," cut the "A". In short, own the inventory for the shortest time possible.
Lack of Information Sharing
Could owners of supply chain information, if that information were shared, influence the costs to
finance inventory? Consider the components of an interest rate; In addition to the cost to fund,
embedded in any financier's rate is the risk premium associated with credit and the costs to
2. service, e.g. the costs to audit and inspect inventory. In effect, financiers seek out the same
information that logistics providers require to provide service to their customers, and/or that
customers gather directly, as financiers rely on asset tracking as a means to verify collateral
levels and location to establish borrowing bases from which they extend credit. This alone
provides a revenue opportunity in that real-time information on inventory levels and status has
value to financiers because certainty of asset location and control of physical movement and
possession results in a reduction in risk that can be reflected in the cost of credit. Put another
way, the risk premium and servicing cost components of the interest rate are artificially high
because financiers gather supply chain information independently and far less accurately than
logistics providers, increasing risk and cost, resulting in an artificially higher rate. In short, reliable
supply chain information is credit-enhancing. Owners of this information have a great asset, but
they fail to maximize its value.
Poor Coordination
At the same time, each supply chain participant typically arranges financing separately. Suppliers
establish lines of credit with financial service providers to acquire equipment to produce their
products, to provide financing to build inventory and to support the extension of trade credit.
Manufacturers, distributors and value added re-sellers follow the same practice (see Figure1). In
so doing, each participant typically utilizes different financial service providers, each with its own
terms and conditions, pricing hurdles, risk parameters, credit capacity and industry/product
knowledge. Objective coordination with information exchange and physical movement through
the supply chain to support the financing of inventory as it passes from one participant to the next
is rare. As a result, process duplication occurs between suppliers utilizing a variety of different
Figure 1.
Current State
finance and logistics providers. In short, supply chain partners rarely talk about financing as part
of their vendor negotiations, and as a result all pay more.
Elongated payment terms
Countless suppliers are in effect financing their customers, as "net 30" becomes net 60 or worse.
Most supplier discounts e.g. 2% 10 days/net 30 are either not taken or abused. Again, the
Fortune 1000's relentless focus on ROA is the culprit; in effect, suppliers who do not want to lose
an important account pay the price.
As a result, a gross inefficiency exists in most supply chains as higher cost of capital suppliers
finance lower cost of capital manufacturers, assemblers, retailers or distributors. Almost
regardless of industry computer PCs, automotive and retail to name a few the little guys are
financing the big guys, creating a significant revenue opportunity for supply chain information
owners to share their data on product movement and, working in conjunction with financiers, to
manipulate the resulting arbitrage opportunity while earning a slice of the financing revenue in
3. return.
CREDIT SUISSE FIRST BOSTON'S SOLUTION
Partnerships
Progress to date in achieving the supply chain goals of suppliers, manufacturers and retailers has
focused on forming closer relationships or "partnerships" with one another. In theory, by working
more closely together, all parties should achieve their ultimate goal of exceeding customer
expectations at a lower cost with more seamless delivery. The overuse of the term "partnerships"
and mixed results to date notwithstanding, we believe that to achieve real value, these
partnerships must not be confined to traditional supply chain participants, but extend to financial
service providers. To realize value, we utilize the following well-structured approach one that
demonstrates the fundamental improvement opportunities and is articulated to the CEO, CFO
and senior logistics management.
Solution Model
CSFB's solution model is the creation of a
structure whereby logistics providers jointly
market their core products in conjunction with
financial services designed to support
customer solutions, or customers using third
parties direct their provider(s) to offer these
more comprehensive services to their vendor
base. As a result, logistics vendors include
financial and insurance services in conjunction Figure 2.
with their core offering (see Figure 2). The CSFB Model
objective is to establish service groups
composed of finance and insurance companies that work in unison with supply chain participants
to facilitate the movement of products while altering the current method of logistics and financing
interaction to lower costs. As part of this equation, the use of asset securitization is key to further
reduce the financing costs of product distribution. Note that this "single source solution model" is
not the creation of a new product, but rather a re-alignment of existing processes to realize yet-
untapped cost reduction opportunities.
Mechanics
In its most basic format, the logistics service provider and/or customer leverages its information
capabilities and physical movement controls in a cooperative venture with the appropriate
financial providers to capture excess charges between trading partners for financing and
insurance. In most in-bound cases, this takes the form of accelerated payments for goods in-
transit and the introduction of a Product Transit (insurance) Policy to cover insurable risk. In those
situations where the supplier has a higher cost of capital than does the customer and the
customer's actual payment practice has created extended payment situations (45 + days), the
economics of accelerating payment can be substantial. Since the payments are made by a party
unrelated to the customer, there is no increase in the customer's liabilities, while transaction costs
are covered by the discount captured by accelerated payment of the suppliers' invoice. That is,
we use the prompt payment discount often 2% or more to fund the program. To enhance the
potential margin, the funding source needs to be more highly rated than is the customer and have
the ability to tap the securitization markets. Revenue flows to the participants in the form of fees
for sharing product status information and asset management services, including continued
responsibility for accounts payable management. Note that this continued responsibility for
accounts payable management allows the customer to maintain vendor contact while benefiting
4. from the arbitrage opportunity with its suppliers. Meanwhile, the use of the Product Transit Policy
consolidates the placement of insurance coverage, replacing the current process of independent
and uncoordinated coverage placement. The net result is a lowering of costs to insure for all
parties involved in the product's movement.
Clearly, participant selection is key to program performance, as each customer's trading situation
is unique and each financing/logistics solution is tailored to the specific requirements of the
customer's trading practices.
Value Creation
When a supplier ships products to a customer utilizing a logistics provider offering this single
source solution, the supplier is able to receive an immediate payment for the sale, subject to the
terms and conditions under which it has sold its products, instead of having to book a receivable
and fund it on the company's own balance sheet. Note that if the supplier wants to transfer
ownership of the receivable or title to the goods, it will be able to do so. As a result, the supplier
has a new source of financing geared to the credit quality of the customers it sells to rather than
to its own balance sheet. As a result, larger credit exposures can be taken with customers than
would otherwise be possible, while financing costs generally fall because the interest rate is
associated with the customer's credit rating, not the supplier's. At the same time, both the
customer and the logistics provider share in a potentially significant revenue stream (or viewed
another way, lower costs), while the logistics provider has a new, differentiated service vis-a-vis
the competition with no balance sheet encumbrance.
More generally, value creation arises from the coordinated utilization of existing processes
inherent in logistics services and financing. The difference between what is charged currently
under a poorly coordinated set of services versus the savings that can be generated by delivering
these services in a revised format results in reduced costs. In addition to the cost savings, there
is the opportunity for reduced recourse and off-balance sheet treatment that may accrue to the
suppliers and manufacturers serviced under these programs.
EXAMPLES
Computer PCs
Figure 3 depicts an inbound logistics program
for a major computer assembler. The logistics
provider, in this case, a major asset-based
provider with the exclusive contract to support
the assembler's plant, picks up from key
vendors, delivering to the assembly center on a Figure 3.
just-in-time basis. At any given time, $250
million in inventory value is outstanding, that is, Example: Computers
delivered but not yet paid for (in financiers' terms, this $250 million represents the "average net
investment"). The vendors, smaller than the computer assembler and less creditworthy, offer on
average a 2.5% prompt payment incentive to the assembler, i.e. a "trade discount", but the
assembler chooses to ignore it.
This solution is fairly straightforward. The logistics competitor continues to control inbound
product movement and provides product status information to the special purpose company
(SPC) set up to make and receive payments. The invoice servicer supporting the SPC provides
electronic payment to each supplier at point of control by the logistics competitor, less the 2.5%
trade discount. The servicer also provides cash management and risk underwriting. Note that the
5. SPC now "owns" the inventory, not the logistics provider. Meanwhile, the computer assembler
pays the full value of each invoice to the SPC under its normal payment practice.
This program generates $3.3 million in free cash flow per year. What is the key to success here?
We use the trade discount and a bona fide receivable from an investment grade credit (the
Figure 4.
Prioritizing Opportunities
computer assembler) to cover the costs to fund, service, risk underwrite and insure. The free
cash flow is split among CSFB, the logistics provider and the computer assembler.
Generalizations
We are often asked to generalize the set of circumstances that make for the best opportunities.
While such generalizations are difficult because each customer situation/solution is customized,
we can make a few summary statements (see Figure 4). First and most simply, higher value
products offer larger cost improvement opportunities because there is more to finance for any
given volume of product and level of inventory turns. Likewise, faster turn products generally
mean more potential for cost improvement for any given product value and trade terms. Next,
trade terms that are offered but not taken e.g. "2% 10 days/net 30" accompanied by an
elongated or abused payment cycle make for extremely low hanging fruit. These opportunities are
especially lucrative when the supplier has a higher cost of capital than the customer to whom it
ships. Sound familiar?
CONCLUSION
We believe that the proper definition of logistics embraces three flows: physical movement,
information and financial; any solution that addresses only information and physical movement is
not a complete solution, only a transitional one. The service providers that can articulate this new
definition to customer decision makers and deliver a single source solution or customers
progressive enough to direct their logistics providers to offer an integrated service will add
significant economic value to their customers' businesses and enhanced revenue to their own
bottom line. As we look out over the business landscape, we see major outsourcing projects
under consideration in industries where global growth requires new supply chain solutions, all of
them requiring financing.
About The Authors
Jon M. Africk
6. Managing Director, Co-Head of the Global Transportation and Logistics Group.
Jon Africk is a Managing Director in the Investment Banking Division of Credit Suisse First
Boston, responsible for co-leading its investment banking activities in the Transportation and
Logistics sectors. Prior to joining CSFB, Mr. Africk co-founded the logistics investment banking
practice at Deutsche Morgan Grenfell, and spent seven years with A.T. Kearney, where he was a
partner in the Transportation Practice. Leading the firm's work with global logistics companies,
Jon Africk was A.T. Kearney's link between its carrier strategy practice and supply chain
integration team. He has more than ten years experience in the industry.
Jon Africk received his MBA from Northwestern University's Kellogg Graduate School of
Management where he is now a guest lecturer and member of the Transportation Center's
Business Advisory Committee. Jon Africk earned his bachelor's degree in economics, magna
cum laude, from UCLA.
Richard P. Palmieri
Managing Director, Co-Head of the Global Transportation and Logistics Group.
Rich Palmieri is a Managing Director in Credit Suisse First Boston's Investment Banking practice,
and responsible for co-leading the Transportation and Logistics Group. Prior to joining CSFB, Mr.
Palmieri was Managing Director of Logistics and Supply Chain Financing for Deutsche Morgan
Grenfell where he co-founded the logistics investment banking practice. Mr. Palmieri was
Executive Vice President of Marketing and Corporate Development for Deutsche Financial
Services, the Asset Based Financing subsidiary of Deutsche Bank and President of Deutsche
Credit Helicopter Finance.
Before joining Deutsche Bank, Mr. Palmieri was President of Whirlpool Financial Corporation,
Chairman of Whirlpool Financial Aerospace, Ltd. and Chairman of Whirlpool Finance Spain.
Mr. Palmieri is an Officer of the Commercial Finance Association and a member of the Expert
Advisory Panel to the United Nations Commission on International Trade Law. Mr. Palmieri has
over 25 years experience in the Distribution Finance Industry.
7. SPC now "owns" the inventory, not the logistics provider. Meanwhile, the computer assembler
pays the full value of each invoice to the SPC under its normal payment practice.
This program generates $3.3 million in free cash flow per year. What is the key to success here?
We use the trade discount and a bona fide receivable from an investment grade credit (the
Figure 4.
Prioritizing Opportunities
computer assembler) to cover the costs to fund, service, risk underwrite and insure. The free
cash flow is split among CSFB, the logistics provider and the computer assembler.
Generalizations
We are often asked to generalize the set of circumstances that make for the best opportunities.
While such generalizations are difficult because each customer situation/solution is customized,
we can make a few summary statements (see Figure 4). First and most simply, higher value
products offer larger cost improvement opportunities because there is more to finance for any
given volume of product and level of inventory turns. Likewise, faster turn products generally
mean more potential for cost improvement for any given product value and trade terms. Next,
trade terms that are offered but not taken e.g. "2% 10 days/net 30" accompanied by an
elongated or abused payment cycle make for extremely low hanging fruit. These opportunities are
especially lucrative when the supplier has a higher cost of capital than the customer to whom it
ships. Sound familiar?
CONCLUSION
We believe that the proper definition of logistics embraces three flows: physical movement,
information and financial; any solution that addresses only information and physical movement is
not a complete solution, only a transitional one. The service providers that can articulate this new
definition to customer decision makers and deliver a single source solution or customers
progressive enough to direct their logistics providers to offer an integrated service will add
significant economic value to their customers' businesses and enhanced revenue to their own
bottom line. As we look out over the business landscape, we see major outsourcing projects
under consideration in industries where global growth requires new supply chain solutions, all of
them requiring financing.
About The Authors
Jon M. Africk