Supply Chain and Trade Finance

1. How can working capital be optimized with predictive AI/ML? Working capital management ensures that the firm has sufficient liquidity to run its operations smoothly. It is crucial for any company since it is the daily, weekly, and monthly cash requirement for its operations. We've reached a new era in business, one in which guessing is no longer acceptable. The advent of AI-powered process mining technology has revolutionized the concept of data-driven decision-making. Corporate treasury teams are empowered to break from patterns they may not have been aware of previously and foresee threats and risk events before they occur, which are based on data-based insights rather than emotions and guesses. Every business needs a solid and exceptionally well-working capital management strategy that takes numerous circumstances into account. This impacts a company's creditworthiness and financial health. trade and Supply chain finance helps businesses optimize their working capital and monetize via the supply chain ecosystem. Through this, working capital can be optimized, financial ratios and cash flows will be improved, and more economic value could be released from the ecosystem.. For example, a buyer-led supply chain finance program can help the anchor buyer with increased liquidity and DPO. In the meanwhile, such a program can help the suppliers with improved cash flow and accelerated collections on the receivables. Supply chain finance also plays a significant role in improving liquidity available to MSMEs. SCF programs provide consistent and cost-effective sources of liquidity to suppliers, can be accessed at any time, and help to keep credit lines open. This is due to the credit assessment on the large buyers instead of MSME suppliers. With artificial intelligence, working capital management solutions can be more enhanced, well planned and resilient. AI/ML becomes more widely used for the following scenarios: :

2. 1) Uncover new business opportunities from the network. 2) Prevent payment delays and manage cash flows better. 3) Better manage inventory and business infrastructure expansion. 4) Minimize unexpected and unforeseen expenses. 5) Avoid firms from scurrying for last-minute bank funding to guarantee they have enough cash on hand, reducing treasury stress and employee churn. 6) Increased profitability and overall efficiency of the company 7) Providing better insights into the actual financial state of the company. We are living in a world where artificial intelligence plays a critical role in detecting bottlenecks, inefficiencies, and opportunities in a company's financial processes. Every company can easily adapt this technology via a FinTech that can help manage its working capital with predictive AI/ML techniques, which helps a company's long-term financial health. It ensures that sufficient cash flow is available to fund the working capital, and that the ecosystem is resilient. This leads to minimal process friction and optimized working capital to ensure your business always does more with less.