Organizations today are searching for the same visibility in their financial supply chains that they enjoy in their physical supply chains. In the attempt to minimize incremental costs at every touchpoint along today's long and complex global supply chains, they are looking more closely at receivables and payables. This is because every activity that happens along the physical supply chain generates a financial effect. Essentially, the financial supply chain involves the flow and use of cash throughout the physical supply chain, where there is an accompanying flow of cash in the transfer of products, services and information.
Source: Inside Supply Management, http://www.ism.ws