Supply chain finance: optimizing financial flows in supply chains

Abstract

Issues related to flows of goods and information are frequently discussed in the logistics and Supply Chain Management literature. But, only few contributions are exploring the financial flows associated with supply chains. This article reviews the state-of-the-art of research regarding financial flows in supply chains. In doing so, it becomes apparent that an explicit examination and optimisation of the cost of capital has been missing so far. In order to close this gap, a conceptual framework and a mathematical model of ''Supply Chain Finance'' is proposed.

Supply chain finance: Optimal introduction and adoption decisions

“…Next, we review each stream in turn. The intertwinement of financial and operational decisions has recently received an increasing attention in the literature (Wuttke, Blome, Foerstl & Henke 2013, Protopappa-Sieke & Seifert 2010, Gupta & Dutta 2011, Pfohl & Gomm 2009, Hofmann 2005, Jamal et al 2000 where the main focus lies on how financial restrictions and decisions influence the operational performance of a supply chain. and Wuttke, Blome, Foerstl & Henke (2013) are both based on multiple case studies providing empirical insights into the supply chain and finance interface.…”

“…The main difference to both publications is that we use a normative model to derive insights on optimal adoption strategies whereas they explore the actual adoption process Jamal et al (2000) consider the question of optimal payment term delays but likewise do not consider SCF. The work of Pfohl & Gomm (2009) provides a general framework to evaluate joint supply chain efforts to improve financing, and Hofmann (2005) provides conceptual insights into the operations and finance interface; we, on the other hand, derive specific normative insights on optimal adoption decisions.…”

Supply Chain Finance in China: Business Innovation and Theory Development

“…According to Gomm [3], optimizing the financial structure and the cash-flow within the supply chain can be identified with SCF. More specifically, Pfohl and Gomm [4] defined SCF as "the inter-company optimization of financing as well as the integration of financing processes with customers, suppliers, and service providers in order to increase the value of all participating companies" (p. 151). The objective of SCF, as Gomm [3] noted, is to decrease the cost of capital and speed up cash-flow by optimizing financing across company borders.…”

Perspectives on Supply Chain Management in the Healthcare Industry

“…It is possible to reduce costs without sacrificing quality by process reengineering in healthcare supply chain management [6]. Besides, supply chain finance has been a hot topic recently [8], and a few hospitals including Chinese ones have started to implement supply chain finance.…”