Modelling the impact of payment delays on the performance of multi-echelon supply chains: the case of grocery distribution in Morocco

Eddine, Mohamed Hicham Salah; Saikouk, Tarik; Berrado, Abdelaziz

doi:10.1080/09537287.2021.1928318

Cited by 4 publications

(6 citation statements)

References 93 publications

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“…, 1990). Although it is puzzling that resources retained from delaying payment to suppliers significantly reduce sales performance, this result validates the claim by Eddine et al. (2021) that deferred payments can affect the financial performance of the entire supply chain.…”

Section: Discussionsupporting

confidence: 77%

“…, 2014; Boden and Paul, 2014). However, in the first instance, deferred payments through trade credit are still crucial for enabling retailers to afford and sell inventory to end users (Eddine et al. , 2021; Paul et al.…”

Section: Discussionmentioning

confidence: 99%

“…Indeed, SMEs consider deferred payments to suppliers as a free source of finance and a price discount (Paul and Boden, 2008;Zhang et al, 2014) which will increase sales by stimulating current demand (Zia and Taleizadeh, 2015). Moreover, SMEs are able to exceed their economic order quantity and, with a larger inventory, satisfy greater market demand (Eddine et al, 2021). Nevertheless, Tiwari et al (2020) caution that buyers are driven to order more inventory than is optimal when deferred payment terms are offered, and this is a concern for selling perishable and seasonal stock.…”

Section: Deferred Payment To Suppliers As An Environmental Factormentioning

confidence: 99%

“…In particular, when retailers exceed their economic order quantity, this disrupts the interval and frequency of their replenishment schedule (Chen and Kang, 2007) and increases costs through unsold inventory, chasing receivables, late payments and default risks in the long run (Chern et al, 2014;Boden and Paul, 2014). However, in the first instance, deferred payments through trade credit are still crucial for enabling retailers to afford and sell inventory to end users (Eddine et al, 2021;Paul et al, 2018). Yet, to do this in a manner that will increase the performance of the entire supply chain, trade credit should be offered and received on account of parties' optimal costs, optimal selling price, optimal production lead time and optimal inventory (Shi et al, 2019).…”

Section: Effect Of Environmental Factorsmentioning

confidence: 99%

“…Whether facing excess or dwindling demand, supply chains bore the brunt of the COVID-19 pandemic (Hamdi et al, 2020). Intent on increasing order quantity, suppliers delivered inventory without upfront payment through formal or informal interest-free arrangement (Eddine et al, 2021). For firms in receipt of the goods, the benefit is an increase in purchasing power and subsequently cash flow .…”

Section: Deferred Payment To Suppliers As An Environmental Factormentioning

confidence: 99%

See 4 more Smart Citations

Strategy creation behaviour and “last gasp” digitalization as predictors of sales performance and cash flow

Onjewu,

Nyuur,

Paul

et al. 2023

IJEBR

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PurposeAlthough recent literature has examined diverse measures adopted by SMEs to navigate the COVID-19 turbulence, there is a shortage of evidence on how crisis-time strategy creation behaviour and digitalization activities increase (1) sales and (2) cash flow. Thus, predicated on a novel strategy creation perspective, this inquiry aims to investigate the crisis behaviour, sales and cash flow performance of 528 SMEs in Morocco.Design/methodology/approachNovel links between (1) aggregate wage cuts, (2) variable operating hours, (3) deferred payment to suppliers, (4) deferred payment to tax authorities and (5) sales performance are developed and tested. A further link between sales performance and cash flow is also examined and the analysis is conducted using a non-linear structural equation modelling technique.FindingsWhile there is a significant association between strategy creation behaviours and sales performance, only variable operating hours have a positive effect. Also, sales performance increases cash flow and this relationship is substantially strengthened by e-commerce digitalization and innovation.Originality/valueTheoretically, to the best of the authors’ knowledge, this is one of the first inquiries to espouse the strategy creation view to explain SMEs' crisis-time behaviour and digitalization. For practical purposes, to supplement Moroccan SMEs' propensity to seek tax deferrals, it is argued that debt and equity support measures are also needed to boost sales performance and cash flow.

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Section: Discussionsupporting

confidence: 77%

Section: Discussionmentioning

confidence: 99%

Section: Deferred Payment To Suppliers As An Environmental Factormentioning

confidence: 99%

Section: Effect Of Environmental Factorsmentioning

confidence: 99%

Section: Deferred Payment To Suppliers As An Environmental Factormentioning

confidence: 99%

See 3 more Smart Citations

Strategy creation behaviour and “last gasp” digitalization as predictors of sales performance and cash flow

Onjewu,

Nyuur,

Paul

et al. 2023

IJEBR

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Valuation of inter-boundary inefficiencies accounting IoT based monitoring system in processed food supply chain

Sharma

Tyagi

Bhardwaj

2023

Int J Syst Assur Eng Manag

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Nowadays, demand for processed food items is escalating towards the record consumption volume, which resulted in the surging of the Food Supply Chain (FSCs) network. But, the flow of the commodities through the various channels of the FSC is hampered by the various inefficiencies, which persist due to a lack of monitoring. This results in the widening of the gap between the supply and demand patterns allied with it. To tackle the same, and cater to the upwelling shares of the consumer demand, the dynamics of the Food Supply Chain Performance System (FSCPS) need to be tuned with the avenues of Industry 4.0 practices. Presented work clusters the various attributes of the inefficiencies, which hampers the processed FSCs dynamics and maintenance-related activities, elaborated by their sub-attributes based upon their events of occurrences. A model comprising the various attributes and sub-attributes of inefficiencies constrained outside the organizational boundaries of a firm’s FSC is rendered in this study. For effective handling of the mutual interdependencies persisting between the attributes, the methodology of the Graph Theory and Matrix Approach (GTMA) is exercised for the analysis of the developed model. Outcomes of the presented work felicitate the managers of industries, its allied corporates and numerous stakeholders of the FSC to ground a robust decisional framework, governing policies and managing the process permutations.

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Researched topics, patterns, barriers and enablers of artificial intelligence implementation in supply chain: a Latent-Dirichlet-allocation-based topic-modelling and expert validation

Riahi,

Saikouk,

Badraoui

et al. 2023

Production Planning & Control

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Modelling the impact of payment delays on the performance of multi-echelon supply chains: the case of grocery distribution in Morocco

Cited by 4 publications

References 93 publications

Strategy creation behaviour and “last gasp” digitalization as predictors of sales performance and cash flow

Strategy creation behaviour and “last gasp” digitalization as predictors of sales performance and cash flow

Valuation of inter-boundary inefficiencies accounting IoT based monitoring system in processed food supply chain

Researched topics, patterns, barriers and enablers of artificial intelligence implementation in supply chain: a Latent-Dirichlet-allocation-based topic-modelling and expert validation

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