The 2:00 Minute Warning

The developments with Silicon Valley Bank and other financial institutions have gotten everyone’s attention. Will these banks be “isolated incidents” or do they portend a contagion with dire economic consequences? Candidly, I think the verdict is still out.

That said, I’ve heard from some shippers and columnists who have asked a different, but very important question: "How will the fallout from the SVB crisis affect supply chains?"

Since we have a great network here at TranzAct, I made a few calls to some really smart economists and other experts who understand how banks operate and navigate liquidity issues.

Here is what we have learned. First, when there are liquidity issues in play, the banks will often times adjust their lending standards. In turn, this will put a sharper focus on how companies manage their balance sheets, and more importantly, will bring working capital issues into the bright lights.

Last year, I chaired an extremely important two part series, "Defending Your Balance Sheet” for C-Level Executives with my good friend Ami Kassar. Ami and his friend Jonathan Mond did an exceptional job highlighting how your supply chain directly impacts several areas on your balance sheet.

Your supply chain will affect your receivables, payables, inventory levels, and other important categories. In light of the SVB situation, there may well be a direct correlation between the quality of your supply chain and the quality of your credit arrangements with your banks and other financial institutions.

That’s why we encourage companies to participate in a Rapid Assessment process. During this three-part process, we evaluate the current state of your supply chain, define your ideal state, and create a road map for getting there with an eye on protecting your balance sheet. This process can help companies identify how they can change their logistics operations to improve their balance sheet and gain better credit terms.

If you’re interested in learning more, we encourage you to get in touch.

Webinars for Women’s History Month

As a WBENC certified business, TranzAct is proud to celebrate Women’s History month. To mark the occasion, we’re hosting two webinars featuring women who are making a tremendous impact in the supply chain area.

We held our first webinar yesterday, which included our CEO, Jean Regan, and was called “A March to the Top – Women Leading Today’s Companies”. When some of you folks told me how fantastic Jean and the other outstanding resources were, I couldn’t help but wonder – will I still have a job? The recording will be available on our website soon.

The second webinar will take place on Tuesday, March 28, and is called “On Our Way – Women in Motion”. We encourage you to register here.

BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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