Supply chain finance: optimizing financial flows in supply chains

2009 ◽  
Vol 1 (3-4) ◽  
pp. 149-161 ◽  
Author(s):  
Hans-Christian Pfohl ◽  
Moritz Gomm
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Financial Flows ◽  
Supply Chain Finance

scholarly journals Factors, Outcome, and the Solutions of Supply Chain Finance: Review and the Future Directions

2018 ◽  
Vol 12 (1) ◽  
pp. 3 ◽  
Author(s):  
Zericho Marak ◽  
Deepa Pillai
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Business Environment ◽  
Bank Loans ◽  
Future Research ◽  
Information Flows ◽  
Future Directions ◽  
Financial Flows ◽  
Factors Affecting ◽  
Supply Chain Finance

In the current highly competitive and fast-changing business environment, in which the optimisation of all resources matters, creating an efficient supply chain is crucial. Earlier studies on supply chains have focussed on aligning product/services and information flows while neglecting the financial aspects. Due to this, in recent times, importance has been given to align financial flows with the other components of the supply chain. The interest in supply chain finance rose after the financial crisis when the bank loans declined considerably, as the need for better management and the optimisation of working capital became obvious. This paper reviews the articles on supply chain finance based on three themes—factors, outcomes, and solutions—while at the same time providing directions for future research on supply chain finance. This article is unique, as it investigates the factors affecting supply chains according to the existing literature. It also sheds light on the outcome of the supply chain without limiting the discussion only to the benefits. Further, it addresses the question: what are the solutions constituting supply chain finance?

scholarly journals Financial Credit Risk Evaluation Based on Core Enterprise Supply Chains

2018 ◽  
Vol 10 (10) ◽  
pp. 3699 ◽  
Author(s):  
WeiMing Mou ◽  
Wing-Keung Wong ◽  
Michael McAleer
Keyword(s):  
Supply Chain ◽  
Credit Risk ◽  
Supply Chains ◽  
Risk Evaluation ◽  
Operating Conditions ◽  
The Core ◽  
Supply Chain Finance ◽  
Enterprise Credit ◽  
Financial Credit ◽  
Core Enterprise

Supply chain finance has broken through traditional credit modes and advanced rapidly as a creative financial business discipline. Core enterprises have played a critical role in the credit enhancement of supply chain finance. Through the analysis of core enterprise credit risks in supply chain finance, by means of a ‘fuzzy analytical hierarchy process’ (FAHP), the paper constructs a supply chain financial credit risk evaluation system, making quantitative measurements and evaluation of core enterprise credit risk. This enables enterprises to take measures to control credit risk, thereby promoting the healthy development of supply chain finance. The examination of core enterprise supply chains suggests that a unified information file should be collected based on the core enterprise, including the operating conditions, asset status, industry status, credit record, effective information to the database, collecting related data upstream and downstream of the archives around the core enterprise, developing a data information system, electronic data information, and updating the database accurately using the latest information that might be available. Moreover, supply chain finance and modern information technology should be integrated to establish the sharing of information resources and realize the exchange of information flows, capital flows, and logistics between banks. This should reduce a variety of risks and improve the efficiency and effectiveness of supply chain finance.

scholarly journals Post-shipment financial flows in supply chains: A study of small- to medium-sized enterprise importers

2019 ◽  
Vol 13 ◽  
Author(s):  
Francois Schutte ◽  
Wesley Niemann ◽  
Theuns Kotzé
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Financial Burden ◽  
Management Strategies ◽  
Lead Times ◽  
Global Sourcing ◽  
Working Capital ◽  
Structured Interviews ◽  
Short Supply ◽  
Financial Flows

Background: Global sourcing has impacted inventory levels, lead times and the availability of working capital, affecting the standard financial flow of a supply chain. Poorly managing the link between the financial and physical supply chains could therefore lead to unnecessarily high inventory investments or to a short supply of inventory, affecting cash flow, working capital, sales and, subsequently, a firm’s profitability.Objectives: The aim of this generic qualitative study was to explore how firms manage their financial supply chain alongside their physical supply chain.Method: Data were collected from 12 semi-structured interviews with senior managers across six small- to medium-sized enterprise (SME) importing firms in various industries.Results: The research finds that the buyer is the driver of both upstream and downstream financial supply chain management (FSCM) as SME importers in Gauteng are proactively managing their financial alongside their physical supply chains. Through the continuous evaluation of sourcing strategies, exchange rate risk management strategies and inventory investment management strategies, firms can align their physical and financial supply chains.Conclusion: This study highlights the lead time and disruption risks and costs of global sourcing and identifies FSCM tools that can be used to alleviate the financial burden associated with long lead times.

scholarly journals Supply chain finance solutions in joint working capital management

2020 ◽  
Vol 13 ◽  
pp. 252-295
Author(s):  
Yana I. Kuzmina ◽  
◽  
Nikolay A. Zenkevich ◽  
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Supply Chain Finance ◽  
Supply Chain Costs ◽  
Inventory Financing ◽  
Managerial Perspective

The research is devoted to joint working capital management in supply chains aiming to improve joint working capital management methods through minimization of financial supply chain costs on working capital using Supply Chain Finance (SCF) Solutions. Though SCF applicability in Financial Supply Chain management has recently been studied to relieve access to capital sources, managerial perspective of SCF solutions is still uninvestigated as well as few other areas. The research suggests a managerial algorithm that contains four developed models: the model of Collaborative cash conversion cycle two models of SCF solutions and the model of Joint Working Capital optimization. The models imply using such SCF solutions as Factoring, Reverse Factoring and Inventory Financing to improve Joint Working Capital in terms of costs on it and liquidity of both supply chain members and entire chain, providing the optimal conditions of SCF solutions. Quantitative optimization with SCF solutions demonstrates on the cases of supply chains the improvement of financial position and liquidity of all chain members. The research has a potential to de applied in businesses since the algorithm represents a comprehensive managerial tool for Joint Working capital management in supply chains. It might be used to achieve optimal cash conversion cycle values for minimal supply chain costs on working capital constrained by liquidity and profitability target levels.

Involving financial service providers in supply chain finance practices

2017 ◽  
Vol 18 (1) ◽  
pp. 42-62 ◽  
Author(s):  
Judith Martin ◽  
Erik Hofmann
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Integrated Management ◽  
Value Added ◽  
Financial Service ◽  
Expert Interviews ◽  
Financial Flows ◽  
Content Type ◽  
Supply Chain Finance ◽  
Multi Method Approach

Purpose The purpose of this paper is the analysis of reasons to involve financial service providers (FSPs) in the integrated management of supply chain flows through supply chain finance (SCF) practices. In addition, service requirements are derived for FSPs in order to respond to company needs related to SCF practices. Design/methodology/approach The selected methodology represents a multi-method approach. First, a survey with 62 companies from Switzerland and ten expert interviews were applied to analyze company needs. Second, the study was complemented with a review of gray press, online offers and 11 expert interviews on the service offer of FSPs for managing supply chain flows. Findings The results derive company needs for an integrated management of supply chain flows. The company needs are matched with available service offer of FSPs. Based on this match quality gaps are identified and service requirements are derived. The results describe initial measures to close the quality gaps. Research limitations/implications This research primarily focuses on financial flows related to the working capital of companies thereby neglecting fixed assets. Practical implications The results provide companies with a structured process to analyze the value added of FSPs. FSPs can use the results to better match their service offer with company needs. Originality/value This research contributes to research on SCF by developing a structured process for analyzing the company needs for SCF practices as well as the value added of FSPs in offering these practices.

scholarly journals Supply chain finance and challenges of modern supply chains

Logforum ◽  
2021 ◽  
Vol 17 (1) ◽  
pp. 71-82
Author(s):  
Kinga Pawlicka ◽  
◽  
Monika Bal
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Supply Chain Finance

Exploring the knowledge development trajectories of the supply chain finance domain: a main path analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dejian Yu ◽  
Libo Sheng
Keyword(s):  
Supply Chain ◽  
Path Analysis ◽  
Trade Credit ◽  
Health Financing ◽  
Knowledge Diffusion ◽  
Financial Flows ◽  
Content Type ◽  
Supply Chain Finance ◽  
Main Path ◽  
Main Path Analysis

PurposeSupply chain finance (SCF), which is able to manage financial flows along the supply chains effectively, has received wide attention from all over the world. Faced with the increasing number of outputs, the purpose of this paper is to investigate the SCF development over the past decades effectively, including the hot topics, knowledge diffusion trajectories and structure.Design/methodology/approachThis paper adopts the keyword co-occurrence cluster and main path analysis (MPA) including four types of main paths, studying the historical development of SCF based on 2,233 papers retrieved from Web of Science during 1970–2019.FindingsThe results show that: (1) the research focuses on several aspects, including trade credit, supply chain management, procurement, health financing and sustainability, etc. and (2) trade credit financing has been the mainstream and the research focus has shifted from one-level trade credit to two-level trade credit. Recently, there is a trend to use game-theoretic models to find the best solutions for members in the supply chain.Originality/valueThis paper addresses the need to investigate the knowledge evolution in the SCF domain. It provides a framework to study the knowledge diffusion trajectories and structure, which helps scholars to handle thousands of papers effectively and deepen their understanding of the history, present and future trends of SCF development.

scholarly journals Theoretical aspects of functioning of agro-food chains and features of their development in Ukrainian

2019 ◽  
pp. 6-20
Author(s):  
O.O. Varchenko
Keyword(s):  
Sustainable Development ◽  
Supply Chain ◽  
Supply Chains ◽  
Food Chain ◽  
Environmental Benefits ◽  
Food Chains ◽  
Internal Environment ◽  
Resource Saving ◽  
Financial Flows ◽  
Domestic Practice

The peculiarities of creation and functioning of agro-food chains based on the study of scientific works were generalized, which allowed to establish a variety of approaches to the definition of agro-food chains and their structure. The study describes the understanding of agribusiness supply chains based on global and local approaches to their functioning, and the "smart" supply chain of agro-food. The main flows in the agro-food chain have been identified, namely: physical (agricultural raw materials, agro-food, logistics operators etc.), information, financial flows, as well as knowledge and experience of management. The purpose of the article is to synthesize scientific approaches to understanding the concept of supply chain and agro-food chain in domestic and foreign practice, systematization of the principles and basic business processes of their functioning, as well as identification of the main factors of the external and internal environment of their functioning in modern conditions. It is highlighted that the main approaches to the interpretation of the supply chain are process and object approaches, both in foreign and domestic practice. Particular attention is paid to the specifics of the functioning of global agro-food chains, which are not considered by academics as buyer-seller relations in the open market, but as coordinated chains of interactions that occur under the influence of key agents in these chains. These leading global chain members control other members of the chain, which has led to increased pressure, primarily on agricultural producers and processors. The scientific opinions on the understanding and specificity of the functioning of alternative supply chains of agro-food, which give rise to economic, social and / or environmental benefits, are generalized. The directions of development of local agro-food chains in domestic conditions and their influence on creation of competitive rural territories are grounded. The factors of the external and internal environment of functioning of agro-food chains and the directions of influence of their changes on the stability of their development, in particular, globalization of climate change, innovation development, and others, are systematized. The necessity of developing additional adaptations to the listed changes in other sectors – transport, storage and energy systems – has been proved, which actualizes the need for strengthening integration and cooperation between the participants of the supply chain. The main goals of the functioning of agro-food chains are highlighted: increase of competitiveness of products, achievement of economic interests of all participants of chain, sustainable development of rural territories, more efficient satisfaction of needs of end users. Achievement of these goals can only be achieved on the basis of observance of the principles of sustainable development and innovation of the chain, resource-saving development of production activities. It is emphasized that the question remains, both in practical and methodical aspects, as to the distortion of the information flow in agro-food chains, especially in chains with a large number of participants and numerous connections between them. In domestic practice, the issue of improving the quality and safety of agri-food products in agricultural supply chains needs to be actualized. Key words: supply chain, agro-food chain, global chains, local agricultural chains, demand chains, logistic chains, "smart" chains.

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