InStream Financial Says Supply Chain Finance 'Next Wave' in Cost Containment

Innovations in supply chain finance technology and financing helping companies gain cost advantages

HUNTINGTON WOODS, Mich., Sept. 18 -- Citing a new Supply Chain Finance Benchmark Report released today by the Aberdeen Group, InStream Financial President Tom Cross echoes findings that the next cost battleground for companies lies in the finance portion of the supply chain.

"Supply chain finance is the next wave in cost improvement," said Cross. "There's money to be saved by companies that use supply chain finance techniques and leverage emerging technology platforms to improve cash flow and access to working capital."

The Aberdeen Group study was based on research into the practices of 110 manufacturing, distribution, and retail companies. The study found that fully 69 percent of companies surveyed are investigating how to use new supply chain finance (SCF) techniques for their supply chains, but just 13 percent are actively using SCF techniques to improve cash flow and access to capital. The SCF leaders were found to create a lower cost and more financially stable end- to-end supply chain, resulting in strategic advantage.

"Finance, procurement, and supply chain professionals need to educate themselves about the new innovations occurring in trade financing and enabling technology," said Beth Enslow, SVP of Enterprise Research for Aberdeen Group. "Early supply chain finance adopters are gaining an end-to-end cost advantage while building a lower-risk supply chain."

Cross added, "Supply chain finance is a refreshing departure from the traditional supply chain cost-shifting practice where someone always got squeezed from the top down. Enlightened companies are now finding that supply chain finance can create cost advantages and benefit everyone in the supply chain."

The Aberdeen study includes benchmark metrics of companies' current maturity levels and supply chain finance success stories. To obtain a copy of the Supply Chain Finance Benchmark Report, please contact Sherry Tompkins at stompkins@instreamfin.com or 248-658-3265.

About Aberdeen Group, Inc.

Aberdeen provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen's benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives -- and the solution providers who serve them. For more information, visit http://www.aberdeen.com/ or call 617-723-7890.

About InStream Financial

InStream Financial, a wholly owned subsidiary of Hennessey Capital Solutions, is a supply chain finance company based in Huntington Woods, Michigan. InStream Financial's patent-pending Web-based technology delivers efficient, cost-effective working capital strategies for supply chain industries worldwide. For more information, please visit the InStream Financial Website at http://www.instreamfinancial.com/ .