« Back to Glossary Index

Though primarily a financial term, the Yield Curve can impact supply chain decisions by reflecting interest rate environments that affect the cost of capital. The shape of the yield curve influences borrowing costs, investment in inventory, and procurement strategies. A steep yield curve might encourage companies to finance larger inventories due to lower short-term rates, while an inverted curve could signal caution in inventory investment. Understanding yield curves helps supply chain managers align financing with inventory optimization goals. 

 

 

Download your White Paper

Yield Curve (in Supply Chain Finance)