scholarly journals Financial Security Analysis of E-Commerce Platform Based on Supply Chain for Heterogeneous Network Location Verification

2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Qiao Qu ◽  
Cheng Liu ◽  
Xinzhong Bao
Keyword(s):  
Supply Chain ◽  
Heterogeneous Network ◽  
Service Providers ◽  
Security Analysis ◽  
Bargaining Game ◽  
Network Location ◽  
Location Verification ◽  
Pricing Decisions ◽  
Supply Chain Finance ◽  
Fourth Party Logistics

The development of supply chain finance, its pricing strategy for bilateral business cooperation between e-commerce, banking institutions, and fourth-party logistics services providers has gained the attention of researchers. This paper combines the heterogeneous network location verification technology, starting from information asymmetry and Rubens bargaining game ideas, and combines it with game theory methods to provide a reference for bilateral cooperation decision-making on e-commerce platforms. The experiment results indicated the pricing decisions of e-commerce platforms which are affected by the efforts of the other party and the ability of bargaining. The quoted price increases with the decrease of the bank’s ability and the increase of the service provider’s ability. The pricing decisions of banks and service providers are only affected by the direct proportion of their respective business costs. When considering the introduction of incentive mechanism conditions, it is found that appropriate incentive conditions can increase the quotation of the e-commerce platform. The price quoted by the e-commerce platform that chooses to bargain with the bank is higher than the price quoted by the bank after negotiating with the service provider, which will help to better realize the benefits. Finally, the paper numerically analyzes the results of the bargaining game between e-commerce platforms and banks and fourth-party logistics service providers, and the numerical results verify the better performance.

4PL Intermediation

2017 ◽  
pp. 64-85 ◽  
Author(s):  
Nejib Fattam ◽  
Gilles Paché
Keyword(s):  
Social Capital ◽  
Supply Chain ◽  
Ad Hoc ◽  
Service Providers ◽  
Short Term ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Fourth Party Logistics ◽  
Major Criterion ◽  
Relief Operations

The 2000s have seen the increased development of a different type of logistics service providers known as fourth party logistics (4PL) service providers. Those providers are now very involved in the short-term “transient” logistics needed by large retailers to organize the supply chain for some of their promotional activities that only last few days, or NGO to organize efficient relief operations after a disaster. Hence, 4PL firms can be considered dynamic assemblers of logistical resources they capture from partners in order to satisfy clients. A major criterion required for a successful 4PL intermediation is trust, as key element of social capital, and this chapter discusses the importance of trust in the efficient operations of this transient or ad hoc relationship between the 4PL and the client.

Supply chain finance is not for everyone

2020 ◽  
Vol 50 (9/10) ◽  
pp. 775-807
Author(s):  
Viktor Hugo Elliot ◽  
Christiaan De Goeij ◽  
Luca Mattia Gelsomino ◽  
Johan Woxenius
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Value Added ◽  
Case Study Methodology ◽  
Content Type ◽  
Operational Conditions ◽  
Supply Chain Finance ◽  
Transit Times ◽  
Resources And Capabilities ◽  
New Perspective

PurposeLogistics service providers (LSPs) have unique resources and capabilities that position them to deliver supply chain finance (SCF) solutions. The study aims to discuss and illustrate the necessary resources and process of value creation and capture of LSPs, potentially offering SCF solutions.Design/methodology/approachRelying on a theoretical framework, combining a resource-based view (RBV) with the literature on SCF, the authors apply an abductive case study methodology, including 11 interviews with representatives from four LSPs.FindingsThe main findings are as follow: (1) although an LSP has sufficient resources for value-added SCF solutions, it may not capture enough value to motivate realising them; (2) an LSP considering offering SCF should account for the interaction between its resources and cargo transit times, risk and regulatory restrictions and (3) future studies should distinguish between financing the logistics services and the moved products.Research limitations/implicationsThe authors contribute to the growing field of SCF research by analysing motives and barriers for LSPs to offer SCF service to their customers. Because none of our case companies decided to move beyond experimentation further research is needed on the resources and capabilities needed for LSPs to successfully venture into SCF.Practical implicationsThe study provides LSPs with clear indications of the difficulties involved when contemplating a move into SCF solutions and discusses the potential value of offering such services.Originality/valueDespite evidence of LSPs engaging in SCF in various industries, academic contributions do not go beyond operational conditions or quantification of benefits. The authors add evidence on how LSPs are currently evaluating the prominence of adding SCF to their value offerings, including a new perspective on resources, value generation and capture mechanisms.

scholarly journals The effect of supply chain finance initiatives on the market value of service providers

2019 ◽  
Vol 216 ◽  
pp. 227-238 ◽  
Author(s):  
Hugo K.S. Lam ◽  
Yuanzhu Zhan ◽  
Minhao Zhang ◽  
Yichuan Wang ◽  
Andrew Lyons
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Market Value ◽  
Supply Chain Finance

scholarly journals The impacts of supply chain finance initiatives on firm risk: evidence from service providers listed in the US

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hugo K.S. Lam ◽  
Yuanzhu Zhan
Keyword(s):  
Supply Chain ◽  
Multinational Corporations ◽  
Financial Risk ◽  
Service Providers ◽  
The United States ◽  
Political Connections ◽  
Firm Capabilities ◽  
Content Type ◽  
It Capability ◽  
Supply Chain Finance

PurposeThis study empirically investigates how supply chain finance (SCF) initiatives together with different firm capabilities and resources (i.e. information technology (IT) capability, operational slack and political connections) affect the financial risk of service providers.Design/methodology/approachThis study collects secondary longitudinal data to test for a direct impact of SCF initiatives on service providers' financial risk. It further investigates the moderating effects of the service provider's IT capability, operational slack and political connections. Additional tests and analytical strategies are performed to ensure the robustness of the results.FindingsThe findings indicate that SCF initiatives help service providers mitigate financial risk. The risk reduction is greater for service providers with higher IT capability, operational slack and political connections, but the last factor applies only to multinational corporations, not domestic companies.Research limitations/implicationsThe data used in this research is limited to SCF service providers publicly listed in the United States, which may restrict the generalisability of the findings. Nonetheless, the research urges scholars to focus more on the financial risk implications of SCF in different market contexts.Practical implicationsThis study encourages service providers to embrace the power of SCF initiatives for mitigating financial risk and allows them to evaluate their SCF investments in light of different firm capabilities and resources.Originality/valueThis is the first study investigating the impacts of SCF initiatives and various firm capabilities and resources on service providers' financial risk. The empirical findings provide important implications for future research and practices.

Understanding SME suppliers' response to supply chain finance: a transaction cost economics perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christiaan de Goeij ◽  
Luca Mattia Gelsomino ◽  
Federico Caniato ◽  
Antonella Maria Moretto ◽  
Michiel Steeman
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Service Providers ◽  
Secondary Data ◽  
Minor Role ◽  
Self Awareness ◽  
Content Type ◽  
Supply Chain Finance ◽  
Qualitative Factors

PurposeReverse factoring (RF) is one of the most prevalent supply chain finance (SCF) solutions. This study challenges the view that suppliers accept financially attractive reverse factoring offers (RFOs) and reject financially unattractive ones. Specifically, it focuses on small and medium enterprise (SME) suppliers and how transaction cost economics (TCE) factors affect their decision.Design/methodology/approachThe authors study eight cases of RFOs, interviewing suppliers, buyers and financial service providers (FSPs) and using several sources of private and publicly available secondary data.FindingsIn five out of eight RFOs, suppliers either accepted unattractive offers or rejected attractive ones. Bounded rationality and opportunism seem to explain such misalignment, while asset specificity and frequency play a minor role in decisions.Research limitations/implicationsThe study shows the need for further investigation linking analytical assessment of SCF benefits with qualitative factors.Practical implicationsSME suppliers cannot assume an RFO will benefit them. They must critically evaluate their buyers' offers, ideally with self-awareness towards how the abovementioned factors might affect their decisions. For buyers and banks, this study gives clear insights on how to approach SME suppliers to avoid rejection of financially attractive RFOs.Originality/valueThis contribution analyses financial attractiveness of RFOs in conjunction with qualitative factors, including rejected RFOs and without assuming that RFOs are financially attractive for suppliers. This is original and relevant for both research and practice, since it extends the understanding of the supplier response to RFOs, thanks to the consideration of TCE factors.

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, Performance and Risk: How Do SMEs Adjust Their Buyer-Supplier Relationship for Competitiveness?

2021 ◽  
Vol 13 (4) ◽  
pp. 78-95
Author(s):  
Feng Liu ◽  
Mingjie Fang ◽  
Kwangtae Park ◽  
Xuesheng Chen
Keyword(s):  
Supply Chain ◽  
Linear Regression ◽  
Service Providers ◽  
Linear Regression Analysis ◽  
Complex Form ◽  
Cross Sectional ◽  
Positive Effects ◽  
Supply Chain Finance ◽  
Moderating Role ◽  
Supplier Relationship

Supply chain finance (SCF) has attracted considerable attention being an innovative business model that allows firms, especially small- and medium-sized enterprises (SMEs), to convert illiquid assets into cash without incurring additional liabilities. However, its effects on SME performance and risk have been insufficiently studied. The competitiveness of SMEs depends on performance enhancement and risk mitigation. Thus, this study constructs a scaled-decile rank transformation of account receivable turnover to gauge the degree to which a supplier implements SCF, thereby examining the relationship between SCF, performance, and risk. We collect data on 4,679 SMEs from the Chinese manufacturing sector. Thereafter, hierarchical linear regression, a complex form of multiple linear regression analysis, is employed to test the hypotheses. The results indicate that an SME’s SCF adoption positively impacts its performance but negatively impacts its risk. To further explore cross-sectional variability, we investigated the buyer-supplier relationship’s moderating role. Results show that an increase in customer concentration strengthens both the positive effects of SCF on performance and the negative effects of SCF on risk. Overall, our study contributes to the literature on the interface of operations and finance in supply chains by exploring the multiple facets of SCF adoption and highlighting the moderating role of buyer-supplier relationship in SCF and SME competitiveness. Finally, we provide managerial implications for SMEs and financial service providers by validating the value of SCF implementation and the buyer-supplier relationship management in forging competitive advantages.

4PL Intermediation

2020 ◽  
pp. 1440-1461
Author(s):  
Nejib Fattam ◽  
Gilles Paché
Keyword(s):  
Social Capital ◽  
Supply Chain ◽  
Ad Hoc ◽  
Service Providers ◽  
Short Term ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Fourth Party Logistics ◽  
Major Criterion ◽  
Relief Operations

The 2000s have seen the increased development of a different type of logistics service providers known as fourth party logistics (4PL) service providers. Those providers are now very involved in the short-term “transient” logistics needed by large retailers to organize the supply chain for some of their promotional activities that only last few days, or NGO to organize efficient relief operations after a disaster. Hence, 4PL firms can be considered dynamic assemblers of logistical resources they capture from partners in order to satisfy clients. A major criterion required for a successful 4PL intermediation is trust, as key element of social capital, and this chapter discusses the importance of trust in the efficient operations of this transient or ad hoc relationship between the 4PL and the client.

Big data analytics in digital platforms: how do financial service providers customise supply chain finance?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hua Song ◽  
Mengyin Li ◽  
Kangkang Yu
Keyword(s):  
Big Data ◽  
Supply Chain ◽  
Data Analytics ◽  
Service Providers ◽  
Big Data Analytics ◽  
Financial Service ◽  
Content Type ◽  
Digital Platforms ◽  
Supply Chain Finance ◽  
Potential Risks

PurposeThis study examines the role of financial service providers (FSPs) in assessing the supply chain credit of small and medium-sized enterprises (SMEs) and how they help SMEs obtain supply chain finance (SCF) through an established digital platform using big data analytics (BDA).Design/methodology/approachThis study conducted data mining analysis on the archival data of China's FSPs in the mobile production industry from 2015 to 2018, using neural networks in the first stage and multiple regression in the second stage.FindingsThe findings suggest that digital platforms sponsored by FSPs have a discriminative effect based on implicit BDA on identifying the quality and potential risks of borrowers. The results also show that tailored information utilised by FSPs has a supportive effect based on explicit BDA in helping SMEs obtain financing.Originality/valueThis study contributes to the emergent research on BDA in supply chain management by extending the contextual research on information signalling and platform theory in SCF. Furthermore, it examines the distinctive financing decision models of FSPs and provides a solution that addresses the information deficiency and overload of both lenders and borrowers and plays a certain reference role in alleviating the financing problems of SMEs.

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