Chief financial officers (CFOs) are increasingly stepping beyond traditional back-office roles to become architects of resilient B2B supply chains, especially amid ongoing global disruptions. While artificial intelligence and advanced technologies often dominate discussions about supply chain innovation, many CFOs are rediscovering the power of foundational financial strategies to optimise supply chains. This renewed focus emphasises cash visibility, discipline, and cross-functional collaboration rather than relying solely on AI-driven solutions.
As global logistics remain turbulent, CFOs face supply chain challenges first, making their role critical in navigating uncertainty. Instead of waiting for perfect technological solutions, many finance leaders are leaning on tried-and-true financial levers such as inventory reduction, vendor consolidation, payment optimisation, and systematic forecasting to reduce costs and restore operational resilience. These measures, while less glamorous than machine learning, are proving effective in managing complex supply chain variables.
Payments have emerged as a surprisingly potent but often overlooked lever in supply chain management. CFOs are leveraging payment terms, early payment discounts, and automated payables platforms to more effectively manage liquidity and enhance supplier relationships. For instance, some companies offer early payments to smaller suppliers in exchange for discounts, while deferring payments to larger vendors with negotiated favourable terms. This dynamic management of payment timing can make the difference between meeting or missing free cash flow targets. Investing in payment analytics tools also provides real-time visibility into cash outflows and their impact on working capital, addressing a critical gap in many fragmented systems.
CFOs are also deeply involved in supplier contract negotiations—a role that has grown from procurement’s domain to a collaborative effort with finance. Beyond just pricing, CFOs now engage in discussions about payment terms, liability, and inventory commitments to align supplier arrangements with broader financial goals. Strategic supplier consolidation helps reduce administrative overhead and increases bargaining power, contributing to more stable and cost-effective supply chains.
Moreover, the role of the CFO is evolving to include active participation in cross-functional planning, with finance leaders embedded in sales, operations, and procurement meetings. This collaboration ensures that strategic sourcing decisions are informed by accurate financial data and aligned with company-wide objectives.
Experts underline that supplier relationships should be viewed as long-term partnerships rather than mere transactional engagements. CFOs are encouraged to build strategic relationships with suppliers, manage risks effectively during negotiations, and leverage their company’s purchasing volume to negotiate better contracts. Using procurement software and standardising supplier onboarding processes can further streamline procurement and improve efficiency.
In the realm of working capital management, CFOs are collaborating closely with procurement teams to set payment term strategies that optimise cash flow while maintaining supplier goodwill. Monitoring supplier performance and managing early deliveries are critical to preventing cash and storage space from being unnecessarily tied up.
Automation offers valuable support by managing accounts payable processes through automated payments, real-time analytics, and multi-currency support for international transactions. Such tools help ensure timely payments, capture early payment discounts, and provide comprehensive visibility into payables health.
All told, CFOs today are not rejecting technology—in fact, AI and automation are seen as important enablers—but what finance leaders urgently need is accurate, real-time data and strong governance frameworks. Without timely and reliable data on inventory and demand, even the most sophisticated AI models fall short. Therefore, the present CFO’s challenge is to blend financial rigour, supplier collaboration, and technology adoption to build supply chains that are both resilient and financially sound in a volatile global environment.
Source: Noah Wire Services
Subscribe to Industry Updates
