Details of supply chain finance programs are now being provided by companies in the United States

Leases & LoansMoney Matters
Written By Jennifer Joslyn

Following a new rule by the Financial Accounting Standards Board (FASB) that requires U.S. companies to disclose details about their supply chain finance programs, organizations have begun sharing information regarding their financing practices. Supply chain financing allows businesses to optimize cash flow by extending payment terms to suppliers while also offering early payment options.

The rule mandates companies to provide a general description of their payment terms and any securities or guarantees offered to finance providers, thus enhancing transparency for investors and capital allocators. Bedrock AI, PPG Industries, LyondellBasell Industries, Fluence Energy, and Viatris were among the first companies to disclose their supply chain financing data. More disclosures are expected as annual information on invoiced amounts yet to be paid under the program will be required starting in 2024.

Read more from Supply Chain Brain ▶

Featured
Navigating Apple's Enduring Partnership with Chinese Suppliers Amid Global Expansion
Navigating Apple's Enduring Partnership with Chinese Suppliers Amid Global Expansion

Apple has deep-rooted ties with Chinese suppliers spanning three decades, making it challenging to sever connections despite diversifying its sources.

Small Trucking Company Faces Financial Strain After Costly Tow on Georgia's I-75
Small Trucking Company Faces Financial Strain After Costly Tow on Georgia's I-75

A small trucking company, Elshaddai Truckers and Logistics, found themselves staring at a hefty bill for a tow job when one of their box trucks gave out on the busy southbound stretch of I-75 in Henry County, Georgia.

Auto Workers' Strike Puts Small Suppliers at Risk With Heightened Financial Strain
Auto Workers' Strike Puts Small Suppliers at Risk With Heightened Financial Strain

The ongoing United Auto Workers' strike against major automakers is significantly impacting small suppliers, with some at risk of shutting down due to the disruption.

Report Reveals Tesla Depends on China for 39% of Battery Supply Chain
Report Reveals Tesla Depends on China for 39% of Battery Supply Chain

A recent analysis conducted by Nikkei Asia and Tokyo’s Fronteo has revealed that nearly 40% of the suppliers for materials used in Tesla's batteries are Chinese companies.

AeroCision Seeks to Pay Suppliers $5 Million Amid Bankruptcy
AeroCision Seeks to Pay Suppliers $5 Million Amid Bankruptcy

AeroCision, an aerospace supplier, has received interim court approval to pay critical vendors up to $5 million, including recent shipments made before filing for Chapter 11 bankruptcy.

Overstock's Bed Bath & Beyond Rebrand Attracts New Suppliers
Overstock's Bed Bath & Beyond Rebrand Attracts New Suppliers

Overstock's acquisition of Bed Bath & Beyond's intellectual property in a bankruptcy auction for over $20 million in June has proven to be a boon for the company.

Solar Supply Chain Raises Human Rights Concerns as Transparency Declines
Solar Supply Chain Raises Human Rights Concerns as Transparency Declines

A new report by experts in human rights and the solar industry has raised concerns about the solar supply chain's lack of transparency amid human rights issues.

Supply Chain Report Investigates Deforestation Linked to Palm Growing in Colombia
Supply Chain Report Investigates Deforestation Linked to Palm Growing in Colombia

An investigation by the International Union for Conservation of Nature (IUCN) Netherlands and AidEnvironment analyzed the palm oil supply chain in Colombia.

DHL Express Announces $192M Investment in Maintenance Hangar at CVG Superhub
DHL Express Announces $192M Investment in Maintenance Hangar at CVG Superhub

DHL Express is set to invest $192 million in constructing an aircraft maintenance facility at Cincinnati/Northern Kentucky International Airport (CVG), the location of its primary U.S. air hub.

Trucking Operational Costs Reach Record High in 2022, Affecting Carriers' Financial Stability
Trucking Operational Costs Reach Record High in 2022, Affecting Carriers' Financial Stability

According to the American Transportation Research Institute (ATRI), running a trucking business has become more expensive due to rising fuel, wage, and equipment costs.

CPOs Strengthen Supplier Relationships to Achieve Cost and ESG Goals, Finds Report
CPOs Strengthen Supplier Relationships to Achieve Cost and ESG Goals, Finds Report

CPOs face challenges in meeting cost plans due to inflation but are prioritizing operational efficiency, ESG initiatives, digital transformation, and cost reduction, according to a Deloitte survey.

Industries Experiencing the Highest Levels of Work-Related Stress
Industries Experiencing the Highest Levels of Work-Related Stress

A recent survey conducted by Vivian Health reveals that work-related stress remains prevalent, with nearly half of the respondents reporting job stress

Paris Summit Gains Momentum: 22 Countries Back Carbon Tax for Ships
Paris Summit Gains Momentum: 22 Countries Back Carbon Tax for Ships

More than 20 countries, including France, Spain, Norway, and Portugal, expressed support for a carbon tax on greenhouse gas emissions from the international shipping industry during a global finance summit in Paris.

Walmart Sets New Standards for Tuna Suppliers
Walmart Sets New Standards for Tuna Suppliers

Walmart and Sam's Club have announced an enhanced seafood policy aimed at improving transparency and data collection in the tuna supply chain.

Suppliers of Walmart have achieved 75% of their emissions goal
Suppliers of Walmart have achieved 75% of their emissions goal

Walmart suppliers have made significant progress toward achieving the retailer's goal of reducing greenhouse gas emissions from its value chain.

Corporate reports reveal extensive reliance on supply chain financing
Corporate reports reveal extensive reliance on supply chain financing

U.S. corporate bankruptcies are on the rise in 2023, reaching their highest level since 2010.

Chief Supply Chain Officers are addressing inventory challenges in their organizations
Chief Supply Chain Officers are addressing inventory challenges in their organizations

Bill Benton, the co-founder of Gains, highlights the reasons why planning processes often fail to effectively address inventory challenges.

Crunching Numbers: Unveiling Supplier Quote Intelligence
Crunching Numbers: Unveiling Supplier Quote Intelligence

Maximizing the business intelligence obtained from supplier information is crucial in manufacturing.

Big Lots Innovates Sourcing Strategies to Address Product Shortages
Big Lots Innovates Sourcing Strategies to Address Product Shortages

Big Lots, in response to product shortages caused by the closure of UFI, has adopted various procurement strategies.

Walmart Partners with Suppliers to Reduce Prices
Walmart Partners with Suppliers to Reduce Prices

While supply chain disruptions have eased, inflation continues to persist.

Details of supply chain finance programs are now being provided by companies in the United States
Details of supply chain finance programs are now being provided by companies in the United States

Following a new rule by the Financial Accounting Standards Board (FASB) that requires U.S. companies to disclose details about their supply chain finance programs, organizations have begun sharing information regarding their financing practices.

Strategies for Collaborating with Diverse Suppliers
Strategies for Collaborating with Diverse Suppliers

A recent study by Supplier.io has stated that there are 5 ways successful companies can boost business with minority-owned firms to attain a more diverse supplier base.

COVID-19 forced suppliers to cancel orders
COVID-19 forced suppliers to cancel orders

In 2020, the coronavirus swept the world and had a detrimental impact on the economy.

Polyfluoroalkyl substances (PFAS) in supply chains can be managed
Polyfluoroalkyl substances (PFAS) in supply chains can be managed

PFAS are a group of man-made chemicals that are used in a variety of industrial and consumer products, including food packaging, non-stick cookware, and firefighting foam.

European middlemen to Amazon are being cut out of the deal
European middlemen to Amazon are being cut out of the deal

The latest effort of Amazon is to cut as many costs as possible, including buying products directly from brands instead of using middlemen.

Supply chain slavery risk increases with poor procurement practices
Supply chain slavery risk increases with poor procurement practices

Modern-day slavery is a serious human rights issue that affects millions of people around the world.

American retailers are asking suppliers to slow down on sending merchandise
American retailers are asking suppliers to slow down on sending merchandise

An excess of merchandise is sitting untouched on US retail companies’ shelves.

Trucking looking at crypto and decentralized finance models to streamline industry payments
Trucking looking at crypto and decentralized finance models to streamline industry payments

According to Allied Market Research, the 2021 global freight trucking market was worth over $2.7 trillion.

Supplier diversity metrics are not yet the norm, despite industry push
Supplier diversity metrics are not yet the norm, despite industry push

Creating a diverse supplier chain seems to be at the forefront of the minds of CEOs, however only 38% of companies actually measure any metrics to make that happen.

Vendors now have more opportunities for supply chain financing
Vendors now have more opportunities for supply chain financing

The corporate supply chain finance market grew globally to a whopping $1.8 trillion in 2021 - a 38% increase from 2020.

Jennifer Joslyn
Previous

Unintended Consequences: California's New Environmental Regulation Poses Challenges for Truckers
Next

The grocery industry is experiencing a significant transformation through the integration of robotics into its operations