Supply Chain Finance Knowledge Guide
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April 1, 2020Hello world!
March 1, 2021
Fourth, we test the impact of financial constraints along the supply chain on this relationship. In doing so, we further contribute to the SCM literature that analyzes cross-company relationships beyond the traditional buyer-supplier dyad (Håkansson and Persson, 2004; Wichmann and Kaufmann, 2016; Carter et al., 2015). Fifth, our study has important methodological implications for future interorganizational WCM research in the field of SCF. To answer the question, this paper reviewed 47 papers rigorously identified in the Scopus research data base from 2003 to 2018. It examines how the concept of SSCF has developed, the motives, practices, and outcomes of SSCF, and the potential of SSCF to boost overall SC sustainability by satisfying sustainability requirements and overcoming barriers to sustainability. We conclude by identifying the important gaps in the existing research and proposing recommendations for future research directions.
A supply chain‐oriented approach of working capital management
- Section 5 provides an in-depth discussion of the effects of SCF on sustainability enablers and barriers to sustainable SC management (SCM).
- This is the first paper that comprehensively analyses the effects of SCF implementation with different firm characteristics from both a time perspective and a volume perspective.
- The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
- We start this section with a content-related discussion of the explorative research results.
SCF refers to the solutions provided by financial institutions and fintech companies that integrate cash flow with product and information flows along the supply chain (SC) to ensure cash-flow optimization from the SC perspective (Wuttke et al., 2013). There is growing interest among academics in extending SCF capabilities beyond optimizing SC cash flow, and in exploring SCF functions in relation to promoting other SC capabilities, one of which is the potential for improving SC sustainability. Supply Chain Financing (SCF) is becoming an increasingly common vertical within the banking industry. The global credit crisis of 2008 forced trade finance seekers to look for alternatives as liquidity in supply chains became a major concern for businesses. This spurred an increased demand for supply chain financing as businesses worked to maintain liquidity and their competitive edge. This report describes the general ecosystem for SCF, summarizes the best practices that financial institutions should adopt as they seek to enter the supply chain financing market and takes and attempt at quantifying the potential SCF market in Pakistan.
Economic policy uncertainty and firm green commitment
In the spirit of fostering a vibrant and constructive debate, I wish to highlight two particular areas in the work of Leuschner et al. that I believe are somewhat unclear and would greatly benefit from further discussion within the SCF scholarly community. The first concerns how their research aligns with and positions itself within the SCF literature. The second revolves around the distinction between ‘profit maximisers’ and ‘cash flow optimisers’ and specifically whether viewing SCF through such a lens is indeed the most effective approach.
Current research: contributions to the special issue on supply chain finance
In section 2, we review previous research and derive five implications for our explorative supply chain network analysis. In section 3, we describe the methodological approach and data used in our examination. Section 5 presents our discussion, which includes methodological suggestions for future SCF research. Moore (1993) acknowledges that the edges of these stages are not clear-cut, rather overlapping. In Section 4, the stages of the business ecosystem are revisited in order to place the SCF ecosystem in this context.
Concentrated supply chain membership and financial performance chain- and firm-level perspectives
Supply chain finance (SCF) can play a role in improving supply chain (SC) sustainability. That is why academics have started investigating the connection between SCF and sustainable SC management, and practitioners have begun developing new https://forexarena.net/ SCF solutions with a sustainable orientation. Although SCF solutions have been suggested as supporting tools for the diffusion of sustainability within SCs, academic contributions have only partially investigated sustainable SCF (SSCF).
Supply Chain Finance and Blockchain Technology: the Case of Reverse Securitisation
The impact of focal firms providing SCF services is used to represent SCF practices in the supply chain since focal firms dominate SCF activities. Cash Conversion Cycle (time perspective), trade credit and prepayment (volume perspective) of the focal firms are independent variables of the analysis. Three type of performances, financial, risk and operations, are dependent variables of the analysis.
This paper sought to explore how a framework for the SCF ecosystem can be conceptualized by performing a systematic literature review of FSCM and SCF related research. In total seven dimensions and one contextual A Contribution to the SCF Literature perspective have been identified and arranged to form the proposed SCF framework. Supply chain finance (SCF) practices have undergone rapid development over the past decades (Wuttke et al., 2013).
Due to these cross-company interdependencies, WCM can have a direct performance impact on affiliated supply chain partners. The digitalisation of supply chain finance (SCF) is a relatively new and fast-growing discipline in business and management. It helps reduce financial risk in supply chains and integrates the cash-to-cash cycle and working capital. Given the importance of supply chain digitalisation in this digital era, this study provides an analysis of the extant literature on digitalisation and SCF published in the last 82 (1941–2023) using scientometrics and bibliometric analyses.
Supply Chain Finance (SCF), an important way of integrating industry and finance that has emerged in recent decades, has attracted the interest of both industry and academia. A large number of conceptual studies on SCF support the theory that SCF benefits supply chains by alleviating financing problems and maintaining stability. The focal firms which are the main SCF practices provider help alleviating the financing problem of their partners by weakening part of the working capital management. However, SCF-oriented practice on the focal firm and traditional corporate finance theory which earing profit by improving working capital management are not aligned. This paper attempts to provide empirical evidence to explain this phenomenon on the SCF-oriented perspective.
Based on the SCF-oriented school of thought, we subject propositions regarding the relationship between working capital and corporate performance from prior WCM research to explorative empirical testing. We derive methodological implications for conducting interorganizational studies in the field of SCF and outline a future research agenda. Systems theory suggests that local management decisions aimed at maximizing the performance of a particular function in an organization may result in suboptimal outcomes that adversely affect the overall performance of a company (Drucker, 1962). Supply chain management (SCM) research expands this concept to include networks of companies, claiming that collaboration among firms leads to enhanced performance and improved competitive advantage (Randall and Farris, 2009). From this perspective, working capital management (WCM), which reflects the financing relationships between companies, presents a key opportunity for interorganizational optimization (Tsai, 2008; Bernabucci, 2008).
This is the case because WCM can have a direct performance impact on affiliated supply chain partners (Hofmann and Kotzab, 2010). For example, if a powerful buyer company is stretching its accounts payable, related suppliers will find themselves confronted with higher accounts receivable levels, which have been found to negatively impact their overall performance (Autukaite and Molay, 2014; Jose et al., 1996). In the long run, higher accounts receivable levels may also have a negative performance impact on the buyer, because suppliers may respond with an increased unit price or reduced service level to compensate for the additional financing costs (Hofmann and Zumsteg, 2015).
As such, high-frequency cross-asset correlations, especially with the futures market, have become more important. The chapter also discusses the important role of the official sector in the FX market, and it highlights a few special topics such as flash events and the FX fixing scandal. We start this section with a content-related discussion of the explorative research results. We then derive a nonexhaustive list of methodological implications, pointing out how a new wave of large-scale empirical SCF research can be triggered to address remaining shortcomings of our explorative network analysis.
In the development of SCF research and practice, there is growing interest in how SCF solutions help to promote SC sustainability performance. However, the research on sustainable SCF (SSCF) remains scant; both scholars and managers have not fully realized the significant economic, environmental, and social value behind this concept. This study, based on a systematic literature review of 47 articles related to SCF and sustainability, summarizes SSCF motives, practices and outcomes. In addition, to further investigate this emerging topic, this review discusses how SSCF solutions may help to drive sustainable SC enablers as well as mitigate sustainable SC barriers, which, in turn, improves sustainable SC performance.
At the same time, technological advances are changing the shape of the overall business ecosystem in which SCF is embedded. Therefore, the aim of this research is to conduct a systematic review of the SCF literature and develop a framework of analysis to support further exploration of the SCF ecosystem. This research expands on other recent systematic reviews of SCF literature and introduces the business ecosystem concept to the SCF domain. Based on the presented SCF framework, an agenda for future SCF ecosystem research is proposed. Inspired by Serpa and Krishnan (2018), Kim and Henderson (2015), and Lanier et al. (2010), we link (focal) companies based on secondary data to their major customers and suppliers.
Furthermore, this review provides a working definition of SSCF based on the results of literature review. SSCF refers to innovative SCF solutions that can either incentivize and reward the sustainable performance of suppliers and/or retailers, thus facilitating the enablers and mitigating barriers towards sustainable SCM practice, and therefore improve the sustainable performance of the entire supply chain. Companies found themselves looking for solutions to their liquidity and working capital needs, in an environment with restricted access to capital (Caniato et al., 2016, Gelsomino et al., 2016, Liebl et al., 2016). The solutions created to address these needs gave rise to the fast growing field of supply chain finance (SCF) (Gelsomino et al., 2016, More and Basu, 2013). While supply chain finance (SCF) is receiving growing attention in research, it remains limited in reach and fragmented in its implementation.
