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Payments Unbound unites clients from a wide range of industries to bring you innovative insights that help you navigate the future of payments.
Supply chains manage flows of goods—but they also manage the flows of cash that make global commerce possible. When a parcel arrives on your doorstep, it represents the culmination of a series of complex financial interactions that began months earlier.
Consider a single product, like a running shoe: It might contain inputs and processes that span a wide range of countries. Rubber from Indonesia, foam from China, eyelets from Vietnam. And payments must be carefully coordinated between all parties— often across different currencies, regulatory regimes and banking systems—to keep production moving.
The challenge, however, is timing. Component manufacturers need funding to produce parts. Assembly facilities must pay for production runs. Logistics companies need capital to ferry the finished goods around the world. In all cases, outgoings precede revenue, meaning that monitoring cash flow is crucial. To avoid operations stalling, businesses need to preempt deficits and get finance at the right time. Global events, however, can make this easier said than done.
Using data from Slope, a B2B payments platform for enterprise companies, we visualized the 2024 financial stories of four anonymized businesses, each reflecting a typical player in the global running shoe supply chain.
SUPPLY CHAIN CASH FLOW
The monthly revenue from the downstream company, minus the cost of buying from the upstream companyAGGREGATED CASH FLOW
The cumulative monthly revenue from the downstream company, minus the cumulative monthly costs of buying from the upstream companyFINANCE OPPORTUNITY
The ideal time for each entity to finance, as recommended by Slope
BY J.P. MORGAN PAYMENTS
SOURCES: WWW.JPMORGAN.COM/PAYMENTS-UNBOUND/SOURCES
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