Treasury’s Next Frontier: Leading Liquidity in a Volatile World

Escalating tariffs and supply chain disruptions have thrust CFOs into the strategic spotlight, while supply chain finance, real-time visibility and artificial intelligence are transforming treasury to navigate trade uncertainties with resilience and agility. 

By Liza Tan, T3i Partner Network 

Liquidity has become a critical lifeline as tariffs from the world’s largest economy inject fresh uncertainty into global trade. In response, CFOs are stepping out of traditional back-office roles and emerging as frontline strategic leaders. 

“They’re increasingly acting as strategic leaders or what Bloomberg News has termed “’chief cash collectors’,” said Martin Smith, Global Head of Markets Analysis at East & Partners, in the Trade and Treasury Now (TTN) podcast. 

He added that the weaponization of tariffs, reminiscent of historical protectionist policies like the Smoot-Hawley Act of the 1930s, has introduced unprecedented uncertainty in global trade.  

From Back Office to the Frontline 

To navigate this volatility, CFOs are preparing for the inevitable resumption of hostilities between the US and China in their trade war, Smith noted. They are shortening delivery cycles through logistics improvements, enhancing or implementing just-in-time inventory management, and selling down buffer stocks. At the same time, they CFOs are juggling longer-term strategic planning while maintaining daily regulatory reporting, which Smith described as “daily distractions.” 

In the same podcast, Albert Hollema, an interim CFO with experience across multiple industries, noted that treasurers have been focusing on working capital since disruptions like the container crisis, the Suez Canal incident, and the Ukraine war. These incidents have heightened the emphasis on liquidity and available headroom under credit facilities.  

“Treasurers are moving out of their ‘ivory towers’ to integrate more closely with supply chain procurement control functions. This shift toward real-time operations allows treasurers to facilitate better business interactions and optimize cash flow management,” said Hollema. 

He stressed that this real-time focus is critical in uncertain times, as it ensures businesses have the liquidity needed to weather disruptions.  

Real-time Resilience 

The Covid-19 “Black Swan” event brought renewed urgency to the need for real-time visibility into cash flow and inventory – an area often overlooked until a crisis hits. This kind of visibility is particularly important for treasurers, whose responsibilities differ from other finance roles that focus on historical trends or long-term forecasts. Treasury functions are primarily concerned with daily cash positions and short-term liquidity requirements 

“It isn’t just about knowing how much cash is on hand,” explained Joost Bergen, Partner at T3i Partner Network on the Trade and Treasury Now podcast. “It’s also about understanding the unused portions of your credit lines and the committed revolving credit facilities (RCFs), which serve as vital buffers during market disruptions.” 

Having access to real-time data allows treasurers to monitor liquidity across various bank accounts and currencies, providing a clear picture of available funds and utilization of credit facilities. Without this insight, companies risk operating blindly, unable to respond effectively to sudden revenue declines or payment delays. Bergen noted that many companies lack visibility into their operating companies’ liquidity between reporting periods, which can lead to inefficiencies and missed opportunities to optimize working capital. 

The Strategic Role of Supply Chain Finance 

Supply chain finance (SCF) is emerging as a key tool for managing liquidity and strengthening supplier relationships. Bergen explained that SCF programs, such as reverse factoring, allow buyers to extend payment terms while enabling suppliers to receive payments earlier, arbitraging on credit ratings to mutual benefit. However, he cautioned that companies must carefully assess the costs and ensure alignment with their credit facilities providers to avoid over-reliance on such programs. 

Smith added that SCF is gaining traction across both large corporates and small businesses. Recent research from East & Partners revealed that over two-thirds of Australian SMEs involved in SCF programs reported positive or neutral experiences, with only 2% expressing concerns about dependency on single clients.  

“The forecast for SCF activity is robust, with an expected 40% increase in average facility size over the next six to twelve months. This growth reflects a broader shift toward building resilient supply chains, where SCF helps sustain stressed suppliers and fosters sustainable operations,” added Smith. 

For emerging markets, Hollema stressed the need for standardized processes and clear communication to onboard less established suppliers into SCF programs.  

“Moving production to less developed markets can trap working capital due to currency controls or export restrictions, making it essential to plan for liquidity management. Cultural differences also require clear expectations to ensure smooth integration and operational success,” said Hollema. 

AI and Real-Time Analytics 

AI and real-time analytics are transforming SCF programs by enhancing efficiency and decision-making. Smith noted that while AI is a polarizing topic, its ability to reduce administrative burdens and refocus efforts on liquidity management is invaluable. Real-time analytics enable CFOs to embed themselves across their organizations, moving beyond back-office roles to drive strategic outcomes.  

“Our research shows that one in two global enterprises have invested in real-time SCF capabilities, with strong demand in Asia Pacific for tools like smart contracts and FX risk management, particularly given the U.S. dollar’s recent volatility,” Smith added. 

While SCF can contribute to a company’s long term financial resilience, Hollema highlighted a common pitfall. 

“Many companies invest heavily in SCF systems but fail to fully implement them, leaving departments disconnected. As a CFO, I’ve seen firsthand how bridging these gaps—through better communication and system integration—can optimize working capital and enhance resilience,” added Hollema.  

Simple actions, like fostering dialogue between sales, production, and procurement teams, can yield significant improvements. Hollema shared an example of a U.S. finance director who was unaware of rising inventory due to disconnected processes. This underscores the need for integrated SCF to prevent inefficiencies and ensure liquidity. 

Leveraging Liquidity  

Bergen concluded by emphasizing the importance of aligning local management incentives with centralized liquidity goals. For instance, measuring local CEOs on EBITDA rather than profit (including financial income and costs) facilitates centralized cash management.  

Companies should start by assessing their total liquidity, tracking bank accounts used for operational flows, and ensuring daily visibility into cash positions and facility utilization. These steps, while not glamorous, are foundational to building resilience and avoiding blind spots in liquidity management. 

As T3i launches its supply chain finance practice, these insights offer a roadmap for CFOs and treasurers seeking to navigate global disruptions and build long-term financial resilience. 

For more information on T3i’s Supply Chain Finance advisory services, reach out to us here. To listen to episode 8, subscribe to Trade and Treasury Now on your favorite podcast platform.