Supply chain finance

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Classification of supply chain finance in the SCM

The term supply chain finance (also referred to as supply chain finance) is discussed as part or complement of supply chain management (SCM). Reverse factoring is the enterprise-wide optimization of financial structures and financial flows to maximize the profitability of individual or several companies in a supply chain ( English supply chain ). While supply chain management in the true sense, and therefore logistics management in particular, is primarily responsible for the logistical processes and their optimization with regard to time, costs and (service) quality, supply chain finance is about the financial aspects the supply chain and its optimization in terms of capital costs. The focus here is on the question of which actor (e.g. supplier, logistics service provider) in the supply chain finances what (e.g. logistics real estate, inventory) and how (e.g. leasing, inventory takeover). Supply chain finance is an interface task between supply chain management and financing . The optimization of the flow of goods and information in supply chain management, which is one-sided towards the end customer, is explicitly expanded to include a financial flow analysis that takes into account the interests of equity providers.

Objects of supply chain finance

Objects within the supply chain include real estate such as B. Warehouses and transshipment depots and stocks. This includes preliminary and finished products as well as outstanding claims. In addition, movables such as machines, systems and means of transport are included in the supply chain finance object chain.

Elements of supply chain finance

The elements of supply chain finance include coordinated and standardized electronic invoicing and invoice settlement between the respective suppliers and recipients in the supply chain. The elements also include the automatic coordination of payment flows and the cash discount and rebate management system. The elements of pay-on-production (PoP) and leasing by suppliers or buyers are supplemented.

Scientific explanations

The mechanisms of action of supply chain financing are explained , among other things, with the new institutional economy. According to finance theory , borrowers and lenders have asymmetrical information about the return and risk of an investment. The degree of information asymmetry influences the expected risk premium of the investor. In a supply chain, however, there is often less information asymmetry between two companies about investment projects in the supply chain than between the investing company and external capital providers (e.g. banks). According to the principal-agent theory , this information cannot be transferred to external parties, or only at high cost. The basic idea of ​​supply chain financing is to use this “supply chain information” to reduce the financing risk and thus for cheaper financing, i.e. lower capital costs.

literature

  • Yahsi, B. (2017): Financial Supply Chain Management: Success Factors in Designing Financial Networks. Univ.-Diss., TU Darmstadt (2017), University and State Library Darmstadt, URN: http://tuprints.ulb.tu-darmstadt.de/6720/ .
  • Moritz Gomm (2008): Supply Chain Financing: Optimizing Financial Flows in Value Chains. Erich Schmidt Verlag, Berlin 2008, ISBN 3-503-10689-8 .
  • Pfohl, H.-Chr./Packowski, J. (2009): Inventory financing by logistics service providers. Study results. Darmstadt / Mannheim 2009, ISBN 978-3-924606-57-2 .