Asian Journal of Managerial Science (AJMS)
An Assessment of Supply Chain Finance and Working Capital Management in Organizations
Author : Joydeep DassVolume 8 No.2 April-June 2019 pp 28-33
Abstract
The wave of globalization have dispersed supply chain internationally as production moved beyond national boundaries. Information Technology &communication have made the operations of supply chain much easier and all pervasive. The demands for operating globally has increased and businesses have transformed and identified valuable hidden sources to tap liquidity from within their own processes. [1]. Supply chain finance (SCF) is a hot topic in business circles and connects with supply chain management and trade finance. Organizations the world over are trying to merge the approach of supply chain management and trade finance into tangible benefits. With cash drying up & credit squeeze, Organizations are tapping new sources to finance their working capital needs and avenues for cost reduction are being explored in the entire supply chain. Financial managers have taken the lead to acquirecash and generate savings from supply chain logistics. For Organizations, working capital management is a key priority for increasing profitability without compromising on the day-to-day liquidity available for business. SCF is a niche segment in liquidity management & enormous value can be derived by pulling unnecessary cash locked from the processes in supply chain. This paper is an attempt to study the various supply chain finance topics in discussion today and how it is affects the working capital of an Organization. [2]
Keywords
Supply-chain finance (SCF), Funder, Discounting, Invoice, Program, Liquidity, Risk, Optimization, Solutions, Collaboration, Implementation, and Automation
Full Text:
References
[1] Technology enabled supply chain finance for small and medium enterprises are a major growth opportunity for banks. Retrieved from https://www.ifc.org/wps/wcm/connect/868b5c66-827d-4f15-b56b-81b44ae107b5/EMCompass+ Note+39+Supply+Chain+Financing+FINAL2.pdf?MOD=AJPERES
[2] Supply chain finance. Retrieved fromhttps://www.mizuhobank.com/solutions/trade_finance/ supply_chain_ finance.html
[3] Concepts and trade-offs in supply chain. Retrieved from https://pure.tue.nl/ws/files/4033370/792140.pdf
[4] Supply chain finance Technology Solutions, Analyst Report 2017. Retrieved from https://billibfinance.com/wp- content/uploads /2018/01/2017-SCF-FinTech-Analyst-Report-StrategicTreasurer.pdf
[5] Theory of Supply Chain Finance: Implementation and Organizations benefit. Retrieved from https://www.theseus.fi/bitstream/ handle/10024/142768/Kleemann_Thesis_2018.pdf?sequence=1
[6] Song Hua., & Chen Sijie. et al., (2016). Development of Supply Chain Finance and Intemet Supply Chain Finance: A Theoretical Framework. Journal of Renmin University of China, 5, 95-104
[7] Supply chain Finance EBA European market guide. Retrieved from https://www.abe-eba.eu/media/azure/ production/1348/eba-market-guide-on-supply-chain-finance-version-20.pdf
[8] Understanding supply chain finance. Retrieved from https://cporising.com/2017/10/04/understanding-supply-chain-finance/
[9] Lekkakos S D., & Serrano, A. (2016). Supply chain finance for small and medium sized enterprises: the case of reverse factoring. International Journal of Physical Distribution & Logistics Management, 4, 367-392.
[10] A study of the business case for supply chain finance. Retrieved from https://www.accaglobal.com/ab111
[11] Supply chain finance payable reclassification issue – dead or alive, Retrieved from http://spendmatters.com/ tfmatters/supply-chain-finance-payable-reclassification-issue-dead-or-alive/
[12] 2014 Rethinking trade and Finance. Retrieved fromhttps://cdn.iccwbo.org/content/uploads/sites/ 3/2014/07/ Global-Survey-2014-Rethinking-Trade-and-Finance.pdf
[13] Supply chain finance: The emergence of a new landscape. Retrieved from https://www.mckinsey.com/ ~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/Supply%20chain%20finance%20The%20emergence%20of%20a%20new%20competitive%20landscape/MoP22_Supply_chain_finance_Emergence_of_a_new_competitive_landscape_2015.ashx
[14] Supply chain and risk management. Retrieved from https://www.pwc.com/us/en/risk-management /assets/supply-chain-finance.pdf
[15] Regulatory issues affecting trade and supply chain finance. Retrieved from http://mddb.apec.org /Documents/2015/SMEWG/SMEWG40/15_smewg40_007.pdf
[16] Erik Hofmann & Stefan Zumsteg. (2015). Win-win and No-win Situations in Supply Chain Finance: The Case of Accounts Receivable Programs, Supply Chain Forum: An International Journal, 16:3, 30-50, DOI: 10.1080/16258312.2015.11716350
[17] Supply chain finance solutions: Relevance-Propositions-Market value. Retrieved from https://epdf.tips/queue/ supply-chain-finance-solutions-relevance-propositions-market-value.html
[18] Supply chain finance programs–Help drive working capital performance. Retrieved from https://content.pncmc .com/live/pnc/corporate/pncideas/articles/CIB_TM_FPS_Supply_Chain_Whitepaper_193475_R4.pdf
[19] Supply chain for long-term sustainable growth. Retrieved from https://www.deutschebank.nl/nl/ docs/GTB_FSC_Whitepaper_(A4)_Supply_chain_for_long-term_ sustainable_growth_SCREEN.pdf
[20] Win-win-win: The sustainable supply chain finance opportunity. Retrieved from https://www.bsr.org/reports/ BSR_The_Sustainable_Supply_Chain_Finance_Opportunity.pdf
[21] Trade financial supply chain management. Retrieved from https://www.tradefinanceglobal.com/treasury-management/trade-financial-supply-chain-management/
[22] Fintechs transforming supply chain finance. Retrieved from http://itreasurer.com/Fintechs-Transforming-Supply-Chain-Finance-II.aspx
[23] Trade and supply chain finance for corporates. Retrieved from http://swift/resource/whitepaper_ supply_chain_finance_201304.pdf
[24] Unlocking the ties in working capital. Retrieved from https://c2fo.com/wp-content/uploads/sites/1/2016/05/Treasury-Today-Unlock-the-ties-FNL-0516.pdf
[25] Trade Tech – A new age for trade and supply chain finance. Retrieved from http://www3.weforum.org/docs/WEF_ White_Paper_Trade_Tech_.pdf
[26] Standard definitions for techniques of supply chain finance. Retrieved from http://supplychainfinanceforum. org/ICC-Standard-Definitions-for-Techniques-of-Supply-Chain-Finance-Global-SCF-Forum-2016.pdf
[27] Perspectives for Managers. Supply chain finance – What is its worth. Retrieved from https://pdfs.semanticscholar.org/e49e/ b10fd1329021d46f7dd68d6f4e0e018fb9d.pdf
[28] Banking on the financial supply chain. Retrieved from https://pdfs.semanticscholar.org/ 29e8/c62cd343 561ab57e2caeed4c21e291d0cb8b.pdf
[29] Current news, information and trends on supply chain management systems including software, strategies, operations, best practices. Retrieved from http://www.scmr.com/article/ unlocking_the_potential_of_supply chain_working_capital_finance
[30] The digital supply network: The era of supply chain visibility and tracking. Retrieved from http://www.scmr.com/article/the_digital_supply_network_the_era_of_supply_chain_visibility_and_tracking
[31] Technology platforms for supply chain finance. Retrieved from http://mktforms.gtnexus.com/rs/gtnexus/ images/GTNexus-Aberdeen-SCF-PP.pdf
[32] Guidelines for setting up of and operating the Trade Receivables Discounting system. Retrieved from https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2904
[33] Srivats, KR, (2018, January 17). Digital platform Invoicemart eyeing ₹11,000-crore business in two years Retrieved from https://www.thehindubusinessline.com/money-and-banking/digital-platform-invoicemart-eyeing-11000crore-business-in-two years/article10038031.ece
[34] Basu Bal, Abhinayan (2017, July 4-6). Can UNCITRAL instruments advance supply chain finance to benefit small and medium enterprises. Retrieved from http://www.uncitral.org/pdf/ english/congress/Papers_for_Programme/ 45BASU_BALUNCITRALs_Role_in_Advancement_of_Supply_Chain_Finance_to_Benefit_SMEs.pdf
[35] Popa, Virgil, (2013,February). The financial supply management: Anew solution for supply chain resilience, 15(33). Retrieved from http://www.amfiteatrueconomic.ro/temp/article_1181.pdf
[36] Martin R. Fellenz, Cara Augustenborg, Mairead Brady, Ireland Joe Greene. (2009).Communications of the IBIMA, 10, Retrieved from https://ibimapublishing.com/articles/CIBIMA/2009/704526/704526.pdf
[37] Regulatory Issues Affecting Trade and Supply Chain Finance, Issues paper No-8, (APEC Policy Support Unit November 2014). Retrieved from https://www.apec.org/-/media/APEC/Publications/2014/11/Regulatory-Issues-Affecting-Trade-and-Supply-Chain-Finance/Final-Issues-Paper_Supply-Chain-Finance_5-Nov-4. pdf
[38] Alexander R Malaket (2015, September) Leveraging Supply Chain Finance for Development. Retrieved from http://e15initiative.org/wp-content/uploads/2015/09/E15-Finance-and-Development-Malaket-Final.pdf
[39] B2B Fintech: Payments, Supply Chain Finance & E-Invoicing Guide 2017. Retrieved from https://eespa.eu/wp-content/uploads/downloads/2017/05/NEW-B2B-Fintech-Payments-Supply-Chain-Finance-E-invoicing-Guide-2017.pdf
[40] Mengyang Wang, (February 2016). Research on the Evolution of Supply Chain Finance Mode in the “Internet+” Era. Open Journal of Social Sciences, 2016, 4, 130-136. Retrieved from https://file.scirp.org/pdf/JSS_2016032209413527.pdf
[41] Jean-François Lamoureux and Todd Evans, Supply Chain Finance: A New Means to Support the Competitiveness and Resilience of Global Value Chains. Retrieved from https://www.international.gc.ca/economist- economiste/assets/pdfs/research/TPR_2011_GVC/12_Lamoureux_and_Evans_e_FINAL.pdf
[42] Winnie Lo, Howard Hung, Management Theories and Business Models August 2016, Supply Chain Finance Management of Commercial Bank. Retrieved from https://www.fbicgroup.com/sites/default/files/Supply_ Chain_Finance_V.pdf
[43] Huang Ruiyu & Wang Yuxi, (2014). Study on the Solution to the Financing of Enterprises in Supply Chain Finance. International Journal of Business and Social Science, 5, (7), Retrieved from https://ijbssnet.com/journals/ Vol_5_No_7_1_June_2014/13.pdf
[44] Luca M. Gelsomino, Riccardo Mangiaracina, Alessandro Perego, & Angela TuminoPolitecnico di Milano.(2016). Supply Chain Finance: Modelling a Dynamic Discounting Programme. Journal of Advanced Management Science, 4(4), Retrieved from http://www.joams.com/uploadfile/2015/0602/20150602114822500.pdf
[45] Greg Filbeck, Sanjay Kumar, Jiangxia Liu, & Xin Zhao, (2016) “Supply chain finance and financial contagion from disruptions: Evidence from the automobile industry”, International Journal of Physical Distribution & Logistics Management, 46(4), 414-438.
[46] Busting Payable Finance Myths Key Trends & Issues in the Digital Age 2018, Corporate Guide 6th Publication. Retrieved from http://tradeshift.com/wp-content/uploads/2015/01/BustingPayableFinance_Tradeshift_2018.pdf
[47] Aimin Deng., & Meng Sen.(2017).. A Research Review on Pricing Influencing Factors of Supply Chain Financial Services, World Journal of research and review (WJRR) 4(2), 9-15 Retrieved fromhttps://www.wjrr.org/ download_data/WJRR0402005.pdf
[48] YaghoobOmrana , Michael Henkeb , Roger Heinesc , Erik Hofmannd, Blockchain-driven supply chain finance: Towards a conceptual framework from a buyer perspective. Retrieved from https://www.alexandria.unisg.ch/ 251095/1/WP29-Blockchaindriven%20supply%20chain%20finance%20Towards%20a%20conceptual% 20framework%20from%20a%20buyer%20perspective.pdf
[49] Wuttke, D., Blome, C., Henke, M. (2013). Focusing the Financial Flow of Supply Chains: An Empirical Investigation of Financial Supply Chain Management. International Journal of Production Economics, 145(2), 773-789.
[50] Pramatari, K., (2007). Collaborative supply chain practices and evolving technological approaches. Supply Chain Management: An International Journal, 12(3), 210 – 220.