There are some tentative signs that the worst of the disruption to international supply chains might be easing. A report published by BNP Paribas earlier in July acknowledges that delays are still an issue but referred to recent data suggesting that indicators are improving.
Supplier support and resiliency have become top priorities for our clients. Just-in-time has turned into just-in-case
These indicators include a fall in the index of supply-chain pressures in China and a reduction in supplier delivery times in the technology equipment sector for the second consecutive month. The report also referred to some improvement in shipping rates.
Several banks are now pushing ahead with plans for deep-tier supply-chain financing to extend credit to smaller suppliers.
In March, Citi announced that it had started working with Stenn – a global platform providing small and medium-sized enterprise funding – as part of the expansion of its global trade payables finance product range.
According to Parvaiz Dalal, global head of supply-chain finance at Citi, the bank has heard a lot from clients about the challenges their businesses are facing to extend support to manufacturers and second-tier suppliers, while also having to shift their supply chains to retain continuity in procurement flows.
“Corporates
