Financial service providers and banks’ role in helping SMEs to access finance

2018 ◽  
Vol 48 (1) ◽  
pp. 69-92 ◽  
Author(s):  
Hua Song ◽  
Kangkang Yu ◽  
Qiang Lu
Keyword(s):  
Supply Chain ◽  
Information Asymmetry ◽  
Case Studies ◽  
Commercial Banks ◽  
Service Providers ◽  
Financial Service ◽  
Dyadic Relationship ◽  
Content Type ◽  
The Impact ◽  
Depth Interviews

Purpose Despite their crucial role in sustaining national economies, small and medium enterprises (SMEs) are beset by the constraint of financing at better conditions. The purpose of this paper is to compare supply chain finance (SCF) solutions provided by commercial banks and financial service providers (FSPs) that help SMEs access financing. Design/methodology/approach This study looks at multiple case studies using in-depth interviews with focal firms (lenders) to answer the research questions. In-depth interviews were conducted with three Chinese FSPs and three commercial banks providing working capital to the same SMEs. The unit of analysis is SCF solutions that have made the companies competitive in the industry. Findings The case studies show that the acquisition of transaction information and business credit in SCF can reduce ex ante information asymmetry. SCF utilizing receivable transfers, closed-loop business, relational embeddedness, and a combination of outcome control and behavioral control can also reduce ex post information asymmetry. For these reasons, compared with commercial bank-dominated SCF, SCF adopted by FSPs in the supply chain can better reduce information asymmetry. Originality/value This study contributes to the emerging literature exploring the impact of SCF on SMEs accessing financing. In particular, this study provides supply chain management and operations insights on SCF and their consequent influence. Previous research has focused on the direct dyadic relationship between lenders and borrowers while neglecting supply chain effects. Uniquely, this study explores the different ways commercial banks and FSPs implement SCF solutions.

Mitigating information asymmetry in inventory pledge financing through the Internet of things and blockchain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lixin Liu ◽  
Justin Zuopeng Zhang ◽  
Wu He ◽  
Wenzhuo Li
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Information Asymmetry ◽  
Commercial Banks ◽  
Business Models ◽  
Service Providers ◽  
The Internet ◽  
Novel Ecosystem ◽  
Content Type ◽  
The Internet Of Things

PurposeRisks resulted from asymmetric information have become crucial barriers for commercial banks to implement supply chain finance (SCF) – mainly the inventory pledge financing (IPF). At the same time, online financial service providers (OFSPs) are emerging as strong competitors in the SCF market. As a result, commercial banks need to update their traditional SCF business models and alleviate their over-dependence on OFSPs.Design/methodology/approachThe authors employ a multi-case-study method to investigate how the Internet of things (IoT) and blockchain technologies can be jointly leveraged to mitigate SCF risks. In-depth interviews were conducted to depict the business models and their novel ecosystem to reinforce traditional banks' ability in SCF services.FindingsFrom the perspective of information asymmetry, the authors categorize IPF risks into three groups based on the principal-agent theory: collateral, warehousing and liquidity risk. The findings suggest that IoT can primarily improve traditional banks' information acquisition ability, and blockchain can facilitate credible information transformation, enabling banks to acquire knowledge from collaterals. Besides, the e-platform in the new architecture increases banks' involvement in the supply chain and builds a fair network to curtail warehousing risks. The employment of smart contracts and collaborative mechanism ensure process and outcome control in mitigating liquidity risks.Originality/valueThe research contributes to the literature by confirming the role of emerging technologies in reducing information asymmetry risks. Besides, the findings provide valuable insights for practitioners to promote effective practices and approaches in IPF.

When physical and digital worlds collide

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Supply Chain ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Business Models ◽  
Retail Sector ◽  
Content Type ◽  
Pertinent Information ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The impact of digitalization on the retail sector has prompted firms to modify existing business models to create a hybrid that focuses on both physical and online channels. Involving the entire company in the development of suitable approaches to revenue distribution, supply chain operations and communication activities can help ensure a successful transformation. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format

Strategic logistics outsourcing: upstream-downstream supply chain comparison

2017 ◽  
Vol 10 (3) ◽  
pp. 309-333 ◽  
Author(s):  
Saleh Fahed Alkhatib
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Integrated Approach ◽  
Fuzzy Decision Making ◽  
Logistics Outsourcing ◽  
New Approach ◽  
Content Type ◽  
Strategic Objectives ◽  
The Impact ◽  
Fuzzy Quality Function Deployment

Purpose The purpose of this paper is to develop a new integrated approach for the strategic logistics outsourcing process through identifying the logistics independent success factors (ISFs) and linking them with the firm’s strategic objectives and logistics requirements. Then, the new integrated approach will be used to compare the outsourcing processes for the upstream and downstream supply chain members. Studies of logistics outsourcing reveal the strategic importance of this process and the increasing need for new strategic approach. Design/methodology/approach The design is based on mixed methodology and integrated approach. The fuzzy decision-making trial and evaluation laboratory technique has contributed to the construction of interdependent relationships, development of impact-relationship maps (IRMs) and identifying ISFs. The fuzzy quality function deployment technique was used to link the strategic objectives, logistics requirements and the ISFs to evaluate and select logistics service providers (LSPs) strategically. Finally, two case studies (upstream and downstream supply chains) are used to demonstrate the new approach effectiveness and to highlight the differences/similarities between the two streams. Findings In addition to the new strategic logistics outsourcing approach, this study analysed the impact relationships of the LSPs’ framework factors and constructed their maps. In all, 21 ISFs have been identified: 8 logistics key performance indicators, 7 logistics services and activities and 6 logistics resources and capabilities. The two streams’ comparison relived several differences in terms of strategic objectives, logistics requirements and ISFs. Research limitations/implications The new approach for strategic logistics outsourcing can help firms to perform a better multi-stakeholder multi-criteria strategic outsourcing process. In addition, the upstream–downstream supply chain comparison increases our understanding how different supply chain members perform different outsourcing processes. Originality/value This is one of the pioneering studies that compares the supply chain upstream–downstream perspectives to highlight logistics outsourcing similarities and differences. To the best of author’s knowledge, this is one of the first logistics outsourcing studies that identifies ISFs for strategic logistics outsourcing, provides the first IRMs for the strategic logistics factors and develops a new integrated approach for strategic logistics outsourcing

Impact of additive manufacturing technology adoption on supply chain management processes and components

2016 ◽  
Vol 27 (7) ◽  
pp. 944-968 ◽  
Author(s):  
Katrin Oettmeier ◽  
Erik Hofmann
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Additive Manufacturing ◽  
Technology Adoption ◽  
Case Studies ◽  
Chain Management ◽  
Content Type ◽  
Starting Point ◽  
Engineer To Order ◽  
The Impact

Purpose The purpose of this paper is to provide a systematic analysis about the effects of additive manufacturing (AM) technology adoption on supply chain management (SCM) processes and SCM components in an engineer-to-order environment. Design/methodology/approach Based on two explorative case studies from the hearing systems industry, the impact of AM technology adoption on SCM processes and SCM components is investigated. General systems theory and the contingency approach serve as theoretical underpinning. Findings Not only the internal processes and management activities, e.g. in manufacturing and order fulfillment, of producers are affected by a changeover to AM, but also the SCM processes and components relating to the supply and demand side of a firm’s supply chain. Endogenous and AM technology-related factors are contingency factors that help to explain differing effects of AM technology adoption on SCM processes and SCM components. Research limitations/implications It is proposed that AM’s ability to economically build custom products provides the potential to alleviate the common dilemma between product variety and scale economies. Practical implications Manufacturing firms are encouraged to consider the potential effects of AM on SCM processes and SCM components when deciding whether to adopt AM technologies in the production of industrial parts. Originality/value The research adds to the widely unexplored effects that AM technology usage in customized parts production has on SCM processes and components. Moreover, the general lack of case studies analyzing the implications of AM technology adoption from a supply chain perspective is addressed. The resulting propositions may serve as a starting point for further research on the impact of AM in engineer-to-order supply chains.

Risk propagation and its impact on performance in food processing supply chain

2016 ◽  
Vol 11 (2) ◽  
pp. 660-693 ◽  
Author(s):  
Atanu Chaudhuri ◽  
Samir K. Srivastava ◽  
Rajiv K. Srivastava ◽  
Zeenat Parveen
Keyword(s):  
Supply Chain ◽  
Performance Measures ◽  
Food Processing ◽  
Service Providers ◽  
Risk Mitigation ◽  
Interpretive Structural Modeling ◽  
Content Type ◽  
Business Cases ◽  
And Performance ◽  
The Impact

Purpose The purpose of this paper is to identify various risk drivers which affect a food processing supply chain and to create a map of how those risk drivers propagate risks through the supply chain and impact important performance measures. Design/methodology/approach This study involves experts from food processing companies to elucidate the contextual relationships among the risk drivers and between risk drivers and performance measures. This is used to quantify the relationships and to determine the indirect and overall relationships applying Fuzzy Interpretive Structural Modeling. Findings Three categories of risk drivers which Indian food processing companies need to pay maximum attention to minimize risks are identified. These are supplier dependency and contracting, supplier variability, visibility and traceability and manufacturing disruptions. Analysis shows that collaborating with suppliers and logistics service providers, developing mutually beneficial contracts with them while ensuring that adequate technology investments are made can significantly mitigate risks and consequently improve margins and lead to revenue growth. Research limitations/implications This study has been carried out with experts from large food processing companies in India, and hence, the results cannot be generalized across other types of food processing companies. Practical implications The proposed methodology can help understand the interrelationships between supply chain risks and between those risks and performance measures. Thus, it can help a food processing company to create business cases for specific supply chain risk mitigation projects. Originality/value This study is one of the earliest to create a comprehensive risk propagation map for food processing companies which helps in quantifying the impact the risk drivers have on each other and on performance measures.

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.

Selection of tailored practices for supply chain management

2013 ◽  
Vol 33 (8) ◽  
pp. 1040-1074 ◽  
Author(s):  
Ana Cristina Barros ◽  
Ana Paula Barbosa‐Póvoa ◽  
Edgar E. Blanco
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Case Studies ◽  
Case Study Research ◽  
Secondary Case ◽  
Supply Chain Performance ◽  
Chain Management ◽  
Content Type ◽  
The Impact ◽  
Selection Of

PurposeThe purpose of this paper is to investigate what hinders businesses to achieve superior supply chain performance and how this knowledge may be used in the process of selection of tailored practices for supply chain management (SCM).Design/methodology/approachLiterature review and secondary case studies were used to identify hinders of superior supply chain performance. A method for the selection of tailored practices for SCM is developed. Case study research is used to validate the value of the developed method for practice and research.FindingsThis research identifies detrimental phenomena that are observed in the management of supply chains: waste, uncertainty, vulnerability, congestion, bullwhip, diseconomies of scale and self‐interest. It develops and illustrates a method for the selection of tailored SCM practices.Research limitations/implicationsThis research did not verify the completeness of the list of phenomena identified. The implementation of the selected practices was not in the scope of the case studies.Practical implicationsResearchers may use the phenomena to study the impact of different practices in the overall supply chain performance, as well as to study the interactions between the different phenomena. Practitioners may use the proposed method as a diagnosis and continuous improvement tool for their supply chain.Originality/valueAlthough the supply chain phenomena have been explored individually in the literature, a holistic approach of the phenomena had not yet been developed to the best of our knowledge. The method developed identifies a set of tailored practices that are in alignment with the context and strategy of the business and decrease the overall effects of the detrimental phenomena.

scholarly journals The role of 4PL provider as a mediation and supply chain agility

2020 ◽  
Vol 2 (2) ◽  
pp. 99-111
Author(s):  
Macide Berna Çağlar Kalkan ◽  
Kenan Aydın
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Survey Data ◽  
Service Providers ◽  
Equation Modeling ◽  
Content Type ◽  
Supply Chain Agility ◽  
The Impact ◽  
The Relationship

PurposeThe aim of this study is to examine the role and capabilities of fourth party logistics (4PL) in the supply chain agility and firm performance. In addition to this, the relationship between supply chain agility and firm performance is also examined. This study aims to fulfill the gap in the literature about the studies on the relationship between 4PL capability dimensions, supply chain agility and business performance.Design/methodology/approachThe study uses survey data from 58 senior executives and managers in the logistics and supply chain functions from 4PL service providers' customer firms in Turkey. The results are structural equation modeling using SmartPLS software. Snowball sampling method was used to collect survey data.FindingsThis study shows that integrator and supply chain infomediary are appropriate practices for mediating the impact of agile supply chain strategies, on firm performance. For supply chain practitioners, results indicate that firms benefit greatly if they consider the outsourcing, such as a 4PL partnership, in conjunction with their supply chain strategy.Research limitations/implicationsTime, cost and the presence of businesses located in different cities across Turkey in the sample of study and the existence of the tendency of enterprises not to participate in the research can be stated as the limitations of this study.Originality/valueIn the literature, studies on 4PL have been conducted in different fields which can be categorized as follows: 4PL solution development, reasons that facilitate and prevent the design and implementation of 4PL, scope of 4PL service delivery and profit and risk sharing from the structure of 4PL networks. Briefly, the studies focus on conceptualizing and differentiating of 4PL from 3PL before reaching a common definition. Motivation of this study is to fulfill the gap of literature about supply chain agility, firm performance relationship and mediation role of 4PL skill dimensions.

Building business sustainability through resilience in the wine industry

2017 ◽  
Vol 29 (1) ◽  
pp. 74-97 ◽  
Author(s):  
Susan L. Golicic ◽  
Daniel J. Flint ◽  
Paola Signori
Keyword(s):  
Supply Chain ◽  
Empirical Studies ◽  
Wine Industry ◽  
Content Type ◽  
Business Sustainability ◽  
The Usa ◽  
Institutional Transitions ◽  
The Impact ◽  
Depth Interviews

Purpose The purpose of this paper is to address how wine businesses build sustainability – the ability to survive and be successful over the long-term – in a complex market environment. Design/methodology/approach To understand how managers in a wine supply chain (i.e. from grower to consumer) are trying to sustain business within a hyper-competitive industry, the authors used a standard grounded theory, constant comparative research method using formal depth interviews along with additional data sources from wine businesses in nine global wine regions in the USA, Australia, Italy and New Zealand. Findings A framework emerged from the data to improve business sustainability and counteract the complexity in the wine market by developing resilience through innovating and experimenting, obtaining resources/developing capabilities and relying on supply chain connections. Research limitations/implications This conceptual framework contributes to the existing theory on institutional transitions and resilience in business, and extends and broadens it by proposing that resilience is needed to combat entropy in the wine industry for businesses in this industry to survive and thrive. Practical implications Managers can learn from and apply the examples mentioned in this study and follow the framework presented to implement the strategies to build resilience to increase their chances of sustainability. Originality/value This study is one of the first empirical studies to the authors’ knowledge that identifies the impact of entropy in the wine industry and examines resilience as a means to combat an entropic market and obtain business sustainability.

scholarly journals Should hospitals invest in customised on-demand 3D printing for surgeries?

2020 ◽  
Vol 41 (1) ◽  
pp. 55-62
Author(s):  
Atanu Chaudhuri ◽  
Hussein Naseraldin ◽  
Peder Veng Søberg ◽  
Ehud Kroll ◽  
Michael Librus
Keyword(s):  
Supply Chain ◽  
3D Printing ◽  
Clinical Outcomes ◽  
Service Providers ◽  
Flow Time ◽  
Supply Chain Design ◽  
Content Type ◽  
On Demand ◽  
Surgical Guides ◽  
The Impact

PurposeThe purpose of this research is to (1) analyse the effect of customised on-demand 3DP on surgical flow time, its variability and clinical outcomes (2) provide a framework for hospitals to decide whether to invest in 3DP or to outsource.Design/methodology/approachThe research design included interviews, workshops and field visits. Design science approach was used to analyse the impact of the 3D printing (3DP) interventions on specific outcomes and to develop frameworks for hospitals to invest in 3DP, which were validated through further interviews with stakeholders.FindingsEvidence from this research shows that deploying customised on-demand 3DP can reduce surgical flow time and its variability while improving clinical outcomes. Such outcomes are obtained due to rapid development of the anatomical model and surgical guides along with precise cutting during surgery.Research limitations/implicationsWe outline multiple opportunities for research on supply chain design and performance assessment for surgical 3DP. Further empirical research is needed to validate the results.Practical implicationsThe decision to implement 3DP in hospitals or to engage service providers will require careful analysis of complexity, demand, lead-time criticality and a hospital's own objectives. Hospitals can follow different paths in adopting 3DP for surgeries depending on their context.Originality/valueThe operations and supply chain management community has researched on-demand distributed manufacturing for multiple industries. To the best of our knowledge, this is the first paper on customised on-demand 3DP for surgeries.

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