Treasury and Payments

Promoting Healthy Liquidity Throughout The Supply Chain

J.P. Morgan’s James Fraser and Karen Webster, CEO of PYMNTS.com, discuss how Corporates are looking beyond their own four walls to promote healthy liquidity throughout the supply chain. This is the sixth in a podcast series on the “Digital Transformation of Treasury.” This podcast was originally published on  PYMNTS.com.


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Highlights

  • There had been a dramatic increase in the use of traditional trade services as a form of risk mitigation during  the 2008 financial crisis
  • With trade flows disrupted by the global pandemic, corporate treasurers have turned to supply chain finance solutions and receivables financing to help support their suppliers by accelerating payment terms while managing cash flow and liquidity within their own organization.
  • As demand for off-balance sheet financing grows, the need for innovative solutions to quickly inject working capital in the supply chain is reshaping the industry. To address those needs, J.P. Morgan and Taulia Inc. recently formed a strategic alliance to create an end-to-end digital supply chain finance solution offering flexible early payment terms to suppliers of all sizes.  
  • The post-crisis environment will likely create opportunities for other trade finance solutions such as long-term accelerations of supplier payment terms or more permanent supply chain financing arrangements.
  • The continued interest in digital platforms presents both buyers and suppliers with new opportunities to use data and analytics to support more accurate cash flow forecasting as well as streamline supply chain payments, invoices and other paper-based processes.

 

James Fraser

JAMES W. FRASER, GLOBAL TRADE, TRADE STRUCTURED

James Fraser joined J.P. Morgan Chase within the Global Trade organization in July 2019, as the Global Head for Structured Solutions. James joined JPMorgan from Citigroup, where he spent 14 years, most recently serving as a Managing Director and North American Trade Head for the Treasury and Trade Solutions Group. In addition to his responsibility for the strategic direction and continued growth of the franchise, James designed and executed the complete organizational restructuring of Trade’s coverage model, collapsing client facing functions across four trade product pillars to a singular team aligned by industry.

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