scholarly journals The Role of Fintech in Mitigating Information Friction in Supply Chain Finance

2019 ◽  
Author(s):  
Hsiao-Hui Lee ◽  
S. Alex Yang ◽  
Kijin Kim
Author(s):  
Lisa M. Ellram ◽  
Wendy L. Tate

Companies increasingly face challenging economic times, where it is not uncommon to see revenues decline or remain stagnant. This can strain business viability and reduce the return on investment for shareholders. To increase the return on investment and favorably impact profitability, organizations focus on cost reduction efforts. Cost management should be both holistic and purposeful, while taking a supply chain perspective. This is often not the case because the cost reduction efforts tend to be internal and short-term focused and do not consider the supply chain implications of decisions. Strategic cost management takes a supply chain perspective and includes several tools that can help facilitate cost management. This chapter provides a definition of strategic cost management with supporting examples. It also discusses some tools, including total cost of ownership, target costing, and supply chain finance, that can be used to holistically and strategically manage supply chain costs. The chapter closes with a discussion around the growing role of supply chain finance in cost management.


Author(s):  
Femi Olan ◽  
Emmanuel Ogiemwonyi Arakpogun ◽  
Uchitha Jayawickrama ◽  
Jana Suklan ◽  
Shaofeng Liu

2020 ◽  
Vol 26 (4) ◽  
pp. 725-750 ◽  
Author(s):  
Wei Jin ◽  
Chengfu Wang

This paper studies the role of factoring in a bilateral supply chain, where both the supplier and retailer are financially constrained. Applying the stylized Stackelberg game, we analytically present that the supplier’s capital shortage limits the advantage of trade credit provided to the retailer. To overcome this limitation, we design a hybrid strategy composing of trade credit and factoring, and then investigate how the supplier uses factoring strategy to achieve the best performance. Analytical and numerical results show that: (1) each supply chain partner can benefit from factoring, and the benefits depend on operational and financial characteristics; (2) in a fairly priced factoring market, bankruptcy costs reduce the benefits of factoring, but does not change the dominance of full factoring; (3) in a strategically priced factoring market, partial factoring may dominate full factoring. Managerially, our study implies that a supplier may benefit from dividing his accounts receivable when facing a factor with a strong pricing ability.


2018 ◽  
Vol 26 (1) ◽  
pp. 150-167 ◽  
Author(s):  
Zulqurnain Ali ◽  
Bi Gongbing ◽  
Aqsa Mehreen

Purpose A growing need for financing in small and medium enterprises (SMEs) has become a significant obstacle to the development of firms. To remove this barrier, the purpose of this paper is to examine how supply chain finance (SCF) assists the firms to improve their performance by utilizing the resource-based view (RBV). Furthermore, the present study also pursues to test the effect of trade digitization as a moderating variable in the relationship between SC finance and the firm performance. Design/methodology/approach Using data from the textile sector, the authors run confirmatory factor analysis in AMOS 24 and hierarchical linear regression model in SPSS 23 to measure the proposed model and hypotheses, respectively. Findings The study suggests that SCF significantly improves the SMEs performance. Moreover, trade digitization strengthens the relationship between SCF and SMEs performance. Thus, the current study significantly describes the firm RBV through SCF and trade digitization to predict the SMEs performance. Practical implications SMEs entrepreneurs or executives can optimize the working capital through SCF and enhance the visibility of transactions through digitization for improving SMEs performance. Moreover, SCF protects the SMEs due to its nature of risk mitigation strategy. Originality/value This study covered the unexplored gap in the previous literature of supply chain management by establishing the relationship between SCF and the firm performance empirically while identifying the role of trade digitization as moderating variable in the context of textile SMEs by employing RBV theory.


2013 ◽  
Vol 694-697 ◽  
pp. 3545-3548
Author(s):  
Hui Ye ◽  
Guo Ping Cheng

The generation of supply chain finance provides a guarantee for the normal and efficient operation of the supply chain. More and more scholars have been paying attention on how to avoid the capital chain scission in the entire supply chain, give play to the guiding role of the core enterprise of credit in the supply chain. This paper summarizes the forming background and reasons of supply chain financial, and introduces the current stage of the theory research through the literature review, and on this basis it puts forward development prospects of supply chain finance in the new materials industry.


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