Optimal Loan Pricing for Agricultural Supply Chains from a Green Credit Perspective

In recent years, many countries have proposed various sustainable development strategies around environmental issues. The implementation of green supply chain management is an effective sustainable development approach that combines “environmental awareness” and “economic development.” Therefore, introducing the concept of “green” effectively is the main direction for the sustainable development of agriculture in the future. The impacts of green credit policies on agricultural supply chains have rarely been discussed before. Therefore, we focus on the incentive mechanism of green credit policies in the agricultural supply chain. We use the Stackelberg Leadership Model to construct a pricing model which adds the interest subsidy and required reserve ratio (RRR) cuts, and determines the pricing rules of bank loans and production decisions of the farmer in the agricultural supply chain under the incentive policy of green credit by quantifying the optimization problems of the bank and the farmer. The result shows that optimal decisions exist for both farmer and bank in the supply chain game framework. The implementation of the green credit policies contributes to both of their profits. Additionally, the green credit policies give the bank room to reduce interest rates so that the overall utility level of the supply chain could be improved.

Download Full-text

Sustainability Assessment and Agricultural Supply Chains Evidence-Based Multidimensional Analyses as Tools for Strategic Decision-Making—The Case of the Pineapple Supply Chain in Benin

Sustainability ◽

10.3390/su13042060 ◽

2021 ◽

Vol 13 (4) ◽

pp. 2060

Author(s):

Doriane Desclee ◽

David Sohinto ◽

Freddy Padonou

Keyword(s):

Decision Making ◽

Sustainable Development ◽

Developing Countries ◽

Supply Chains ◽

Agricultural Sector ◽

Sustainability Assessment ◽

Assessment Tools ◽

Strategic Decision ◽

Evidence Based ◽

Agricultural Supply

Contributing to Sustainable Development Goals and Agenda 2030 is a shared objective of all institutions and people. The challenges differ according to the characteristics of every context. In developing countries, strongly dependent on the agricultural sector, agricultural supply chains are recognized as crucial for economic growth and enablers for livelihood improvement. Moreover, sustainable development issues are correlated and can meet in agricultural supply chains. For several decades, parallel to decision-makers, the research community has elaborated sustainability assessment tools. Such tools evolved to fit with actuality, but it is challenging to find decision-making support tools for sustainable development adequate in agricultural supply chains and developing countries contexts. There is a necessity to define evidence-based tools and exhaustive analytical frameworks according to sustainability multidimensionality and strategical tradeoffs necessity. The VCA4D method aims to go beyond the limits of previous methods. It proposes a combination of multidisciplinary analytical tools applied empirically to analyze agricultural supply chains in their context. It provides evidence-based analytical results allowing to identify enablers for strategic sustainable and inclusive interventions. However, to even better meet contextual exhaustiveness’s expectations and indicators’ robustness to lead to relevant interventions, we should insist on a stricter framing of contextual data collection processes.

Download Full-text

EVALUATION OF LOGISTIC FLOWS IN GREEN SUPPLY CHAINS BASED ON THE COMBINED DEMATEL-ANP METHOD

Facta Universitatis Series Mechanical Engineering ◽

10.22190/fume210505061o ◽

2021 ◽

Vol 19 (3) ◽

pp. 473

Author(s):

Nikita Osintsev ◽

Aleksandr Rakhmangulov ◽

Vera Baginova

Keyword(s):

Sustainable Development ◽

Supply Chain ◽

Supply Chain Management ◽

Supply Chains ◽

Green Supply Chain Management ◽

Green Supply Chain ◽

Universal System ◽

Chain Management ◽

Green Supply Chains

Supply chains and transport corridors have a significant impact on the socio-economic and environmental situation in the regions where the elements of the logistics infrastructure are located. The achievement of the goals of the concept of sustainable development in these regions is ensured, among other things, as a result of the formation of green supply chain management (GSCM), that is, as a result of changes in existing approaches to supply chain management. Analysis of the practice of supply chain management showed a wide variety of parameters and indicators of logistics flows used in decision-making at different stages of managing these flows. The authors propose a universal system of the logistic flows parameters and indicators for the GSCM, corresponding to the principles of the concept of sustainable development. A methodology for ranking indicators of logistics flows based on a combined DEMATEL-ANP method has been developed. The results of a case study on the evaluation of logistics flows for the GSCM are presented. The ranks of logistics flow indicators obtained in the study are proposed to be used in GSCM to adjust of the logistics flows actual parameters to achieve the goals of the concept of sustainable development.

Download Full-text

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

Journal of Risk and Financial Management ◽

10.3390/jrfm12010003 ◽

2018 ◽

Vol 12 (1) ◽

pp. 3 ◽

Cited By ~ 6

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?

Download Full-text

Influence of Supply Chain Collaborative Innovation on Sustainable Development of Supply Chain: A Study on Chinese Enterprises

Sustainability ◽

10.3390/su12072978 ◽

2020 ◽

Vol 12 (7) ◽

pp. 2978

Author(s):

Hongmei Shan ◽

Ying Li ◽

Jing Shi

Keyword(s):

Sustainable Development ◽

Supply Chain ◽

Supply Chains ◽

Dynamic Capability ◽

Supply Chain Performance ◽

Sustainable Supply Chain ◽

Chinese Enterprises ◽

The Sustainable Development ◽

Collaborative Innovation ◽

Chain Dynamic

The recent trade friction between the two largest economies, US and China, is having a profound impact on the sustainable development of supply chains at a global scale. Supply chain collaborative innovation has not only become the main means for enterprises in various countries to cope with imponderable changes, but also been the driver of increasing supply chain dynamic capability and of achieving sustainable development of supply chains. Based on the survey data of 510 Chinese enterprises, this paper adopts the hierarchical regression analysis and a structural equation model to study the impact of supply chain collaborative innovation on the sustainable development of supply chains. The results show that: (1) Three modes of supply chain collaborative innovation (namely, technology collaborative innovation, management collaborative innovation, and market collaborative innovation) have different effects on supply chain dynamic capability and sustainable supply chain performance. (2) Supply chain dynamic capability plays a significant intermediary role between supply chain collaborative innovation and sustainable supply chain performance. (3) Supply chain technology collaborative innovation has the greatest direct impact on sustainable supply chain performance, followed by supply chain management collaborative innovation. However, the direct effect of supply chain market collaborative innovation on sustainable supply chain performance is not significant; under the intermediary role of dynamic capability, supply chain market collaborative innovation has a significant indirect effect on sustainable supply chain performance.

Download Full-text

Coordination Mechanism of Dual-Channel Supply Chains Considering Retailer Innovation Inputs

Sustainability ◽

10.3390/su13020813 ◽

2021 ◽

Vol 13 (2) ◽

pp. 813 ◽

Cited By ~ 1

Author(s):

Wensheng Yang ◽

Yinyuan Si ◽

Jinxing Zhang ◽

Sen Liu ◽

Andrea Appolloni

Keyword(s):

Sustainable Development ◽

Supply Chain ◽

Supply Chains ◽

Stackelberg Game ◽

Operational Efficiency ◽

Coordination Mechanism ◽

Market Demand ◽

Dual Channel ◽

Physical Channel ◽

Retail Prices

In response to the online channels established by manufacturers, physical retailers are starting to offer innovative services, which will intensify conflicts between manufacturers and retailers. Considering that the conflict will affect the operation efficiency and sustainable development of the supply chain, the coordination mechanism of a dual-channel supply chain has been established. In this study, we construct the Stackelberg game model based on consumer utility theory to analyze the complex mechanism of retailers’ innovation input level affecting supply chain operation and design the double coordination mechanism. The results show that: (1) an optimal combination of wholesale prices, retail prices and innovation input levels can optimize the operational efficiency of the supply chain, (2) Noncooperation among channel members affects the retailer’s product pricing, decreases the market share of the physical channel and increases the market demand of manufacturers, (3) The dual coordination mechanism can alleviate channel conflicts, which can improve the operational efficiency of the supply chain. This study provides several insights on the theory of organizational coordination and sustainable development in conflicts of dual-channel supply chains.

Download Full-text

Benchmarking self-declared social sustainability initiatives in cocoa sourcing

Benchmarking An International Journal ◽

10.1108/bij-07-2017-0186 ◽

2018 ◽

Vol 25 (9) ◽

pp. 3986-4008 ◽

Cited By ~ 4

Author(s):

Sumit Kishore Lalwani ◽

Breno Nunes ◽

Daniel Chicksand ◽

Dev Kumar (Roshan) Boojihawon

Keyword(s):

Supply Chain ◽

Supply Chains ◽

Social Issues ◽

Code Of Conduct ◽

Secondary Data ◽

Social Sustainability ◽

Content Type ◽

Sustainability Initiatives ◽

Sustainable Sourcing ◽

Agricultural Supply

Purpose The purpose of this paper is to examine the self-declared sustainability initiatives of the world’s four largest chocolate manufacturers (Ferrero, Mars, Mondelez and Nestlé) and the measures they take to tackle social problems within the context of establishing sustainable sourcing of cocoa in Ghana and the Ivory Coast. Global cocoa supply chains are under continuous media and public scrutiny. Recent incidents of malpractice in supply chain management have left global chocolatiers vulnerable in terms of how they deal with social issues across their global supply chain networks. Critics have argued that there is a lack of consistency and transparency between what companies say and do in upholding sustainable practices across their supply chains. Design/methodology/approach The authors draw from the sustainable supply chain literature to develop our theoretical parameters and undertake a case-based analysis of the existing sustainability practices of these chocolatiers. Using the insights from this analysis, the authors propose a conceptual framework for a rigorous comparative assessment of self-declared sustainable sourcing initiatives of global agricultural supply chains. The methodology is qualitative and the research method is a secondary-data case study. Findings Four main parameters were identified and used to compare self-declared initiatives, namely: social sustainability certification from respectable bodies; code of conduct for suppliers; partnerships with the primary supply chain stakeholders; and supplier collaboration programme and improvement initiatives. The case companies chosen have implemented several initiatives, but the most prominent seem to indicate the reliance on third-party certification. Not all companies adopted a supplier code of conduct. The partnerships and collaboration programmes with different associations are presented as efficient for companies as well as farmers. Improvements in the conditions of farmers are advocated as a key result. Research limitations/implications This paper is based on self-declared secondary data. Subsequently, it is possible that the case companies did not document some practices; or that companies do not do what they claim. Practical implications This paper provides a comprehensive framework for agricultural businesses to compare their sustainability efforts and improve the performance of their supply chains, particularly those who belong to the cocoa supply chains. The proposed framework allows an assessment of initiatives at policy, strategic, tactical and operational levels to improve social sustainability of supply chains. Social implications This paper may help companies to think more clearly about greater transparency and provide the impetus for dealing more effectively with serious social issues in agricultural supply chains such as: child labour, child trafficking, modern slavery, etc. It may also instruct consumers to better understand what companies do as part of their sustainability agenda, alongside the communication of other features of their products, such as quality. Originality/value The framework adds value by providing a novel way to systematically compile and analyse data around self-declared sustainable initiatives. Actors within agricultural supply chains can use the framework to assess and drive their sustainability efforts and practices, leading to ways to improve the social performance of their global supply chains.

Download Full-text

Is Economic Uncertainty a Risk Factor in Bank Loan Pricing Decisions? International Evidence

Risks ◽

10.3390/risks9050081 ◽

2021 ◽

Vol 9 (5) ◽

pp. 81

Author(s):

Badar Nadeem Ashraf

Keyword(s):

Interest Rates ◽

Bank Loans ◽

Bank Loan ◽

Policy Uncertainty ◽

Economic Uncertainty ◽

Loan Pricing ◽

Standard Deviation Increase ◽

Economic Agents ◽

Country Level ◽

Loan Interest Rates

Uncertainty in economic environment leads economic agents to act cautiously. In this paper, we postulate that such uncertainty leads banks to charge higher interest rate on loans. Measuring aggregate country-level economic uncertainty with the World Uncertainty Index (WUI) and using a bank-level dataset from 88 countries over the period 1998–2017, we find that heightened economic uncertainty increases bank loan interest rates. Specifically, bank loan interest rates rise by 20.67 basis points with a one standard deviation increase in WUI. Our results are robust when we use alternative proxy of uncertainty, include additional controls in the model, and extend the sample size. We also observe that WUI index is better at measuring local economic uncertainty as compared to the Economic Policy Uncertainty (EPU) index. Overall, this study provides evidence that bank price in economic uncertainty is an important risk while setting interest rates on bank loans.

Download Full-text

Framing the transition towards sustainable agri-food supply chains

IOP Conference Series Earth and Environmental Science ◽

10.1088/1755-1315/899/1/012003 ◽

2021 ◽

Vol 899 (1) ◽

pp. 012003

Author(s):

G T Tsoulfas ◽

Y Mouzakitis

Keyword(s):

Sustainable Development ◽

Supply Chain ◽

Environmental Economic ◽

Supply Chains ◽

Food Supply ◽

Food Sector ◽

Chain Management ◽

Food Supply Chains ◽

Sustainable Supply Chains ◽

Shed Light

Abstract The connection of the agri-food sector with the agenda of sustainable development comes naturally, as the chain from production to processing, trading, distribution and consumption is directly connected with significant issues in environmental, economic, and social realms. Today’s challenge for businesses is not whether to embrace sustainability, but rather how to effectively establish sustainable supply chains. Therefore, a solid grasp of the move from “conventional” to “sustainable” supply chains is necessary. In this paper, we focus on the supply chain management of the agri-food sector, seeking to shed light on practices which may contribute to the transition of the sector towards sustainability. In this vein, we extend the conceptual framework which was proposed by Beske and Seuring (2014) so that it accommodates the contemporary particularities of agri-food supply chains.

Download Full-text

The compatibility of the triple-a agri-food supply chain with the United Nations Sustainable Development Goals

IOP Conference Series Earth and Environmental Science ◽

10.1088/1755-1315/899/1/012002 ◽

2021 ◽

Vol 899 (1) ◽

pp. 012002

Author(s):

M Kontopanou ◽

G T Tsoulfas ◽

N P Rachaniotis

Keyword(s):

Sustainable Development ◽

Supply Chain ◽

Supply Chains ◽

Food Supply ◽

Sustainable Development Goals ◽

Chain Model ◽

Food Supply Chain ◽

Diverse Range ◽

Food Supply Chains ◽

Development Goals

Abstract The triple-a supply chain model focuses on ensuring the agility, adaptability, and alignment of the supply chains in order to develop a sustainable competitive advantage. These characteristics have extended the supply chain desired traits from just being cost-effective and responsive. The agri-food supply chains include a diverse range of products, which differentiate in various aspects such as processing, life-cycle, seasonality, vulnerability, etc. These characteristics lead to different supply chain typologies and various requirements for synergies among stakeholders in order to meet these objectives. The situation gets even more complicated when sustainability objectives enter into the supply chain design and operation process. The scope of this paper is to analyze and assess the compatibility of the triple-a agri-food supply chain with the UN sustainable development goals and outline the interventions that could facilitate decision-making concerning the design and operation of sustainable agri-food supply chains.

Download Full-text

DESIGN TRACEABILITY FOR INDONESIA AGRICULTURAL SUPPLY CHAIN BASED ON BLOCKCHAIN (CASE STUDY IN CHILLI COMMODITIES)

International Journal of Advanced Research ◽

10.21474/ijar01/13440 ◽

2021 ◽

Vol 9 (09) ◽

pp. 505-515

Author(s):

Umi Marfuah ◽

◽

Yandra Arkeman ◽

Machfud a ◽

Indah Yuliasih ◽

...

Keyword(s):

Supply Chain ◽

Supply Chains ◽

Crop Production ◽

Production Quality ◽

Multiple Stakeholders ◽

Decentralized System ◽

Agricultural Safety ◽

High Degree ◽

Agricultural Supply

Indonesians are the worlds largest chilli enthusiasts, mostly consuming fresh chilli. Because of chilli products generally perishable characteristics, its price has become unstable.The growing number of agricultural safety and risk issues has revealed a substantial need for an effective traceability solution, which serves as an essential agricultural supply chain method to ensure adequate product safety. Blockchain is the technology that disrupts goods in supply chains of agriculture and offers a revolutionary solution for their traceability. Today, farm supply chains are a dynamic ecosystem with multiple stakeholders, making it difficult to verify a range of main parameters, including the country of origin, stage in crop production, quality compliance, and yield monitoring. This paper suggests using the Ethereum blockchain and intelligent contracts to monitor and traceability operations across the agricultural supply chain effectively. Our proposed solutions remove the need for trustworthy centralized subjects, intermediaries, transaction records, performance, and security enhancements that are highly integral, accurate, and stable. The approach suggested focuses on using intelligent agreements to monitor and manage all communications and transactions between all actors in the supply chains ecosystem. All transactions are registered in the immutable blockchain lead with connections to a decentralized system (IPFS), ensuring the ecosystem is safe, confident, reliable and booming for everyones high degree of transparency and traceability.

Download Full-text