A plethora of factors such as the uncertainties brought about by the pandemic, increases in raw material prices, sudden fluctuations in demand, and problems in international transportation have resulted in difficult-to-solve problems in cash flow and liquidity management. Although short-term practices can be a quick remedy to these problems, what organizations should aim for in order to be less affected by similar crises in the future is ‘financial sustainability’.
In my recent practitioner article published in the TEDAR Magazine, I discuss what financial sustainability is, elaborate on the advantages of being the ‘preferred customer’, and also discuss supply chain financing. For details, check the full article in the recent issue of the TEDAR Magazine.