Viva Books

Reviews:

“With supply chain financing, companies are able to de-risk the balance sheet and improve free cash flows, thereby enhancing return on capital. This reference guide paves the way to generate great potential in global trade and supply chain financing.”

—Parvaiz HH Dalal, Head of Supplier Financing EMEA, Global Head of Strategy and Solution Working Capital Finance, Citigroup, UK

“Supply chain financing uses the supply chain to fund the organization, and the organization to fund the supply chain. Companies and decision makers who want to find out how to capture these funds will find concrete assistance and helpful guidance in this second edition.”

—Dale S Rogers, Professor of Logistics and Supply Chain Management and Co-director, Internet Edge Supply Chain Lab, WP Carey School of Business, Arizona State University

“It’s good to see such a comprehensive, up to date and clearly written book on this vital topic, from authors who combine intellectual understanding of the subject with practical real-life experience.”

—Peter Smith, Spend Matters

“Financing the end-to-end supply chain is not only an excellent guide for practitioners but also an informative compendium for researchers and students. Supply chain finance provides badly needed financial resources for small medium sized enterprises and offers tremendous potential waiting to be identified, explored and unlocked, especially in the Asian region.”

—Dr Zhao Xiande, Professor of Operations and Supply Chain Management Director, CEIBS-GLP Centre of Innovations in Supply Chains and Services Co-Director, CEIBS

Description:

Financing the End-to-End Supply Chain provides readers with a comprehensive understanding of the financial synergies across the supply chain. It demonstrates the importance of the strategic relationship between the physical supply of goods and services and the associated financial flows. The book provides a clear introduction, demonstrating the importance of the strategic relationship between supply chain and financial communities within an organization. This book links together treasury, banking, supply chain, systems, IT, and key stakeholders.

Financing the End-to-End Supply Chain will help senior supply chain practitioners to build collaboration, improve relationships and enhance trust between supply chain partners. With its combination of theory and practice it tackles vital issues including physical, information and financial flows, and tailoring supply chain finance to individual organisations’ circumstances. Recognizing that supply chain finance means different things in different countries, the authors also consider various initiatives to harmonize and develop cross-border financing as well as including an agenda for national and international policy makers. The new edition features interviews from SCF platform providers on how ecosystems are involved in supply chain finance, additional learning activities for students and new examples on working capital management.

Key features at a glance:

Provides readers with a comprehensive understanding of the financial synergies across the supply chain
Combines theory and practice to tackle key issues and adapt supply chain finance to individual organizations’ circumstances
Presents several initiatives to coordinate and develop cross-border financing from institutions such as the World Bank
New to this edition: interviews from SCF platform providers, new examples on working capital management, additional learning activities and a terminology list

Contents:

Foreword by Michael Henke

Foreword by Michiel Steeman

Acknowledgements

List of abbreviations

Introduction

Part One: The background

Chapter 01. The nucleus – Supply chains and financial performance • Introduction • Supply chain disruption • The importance of supply chains • Supply chain management and financial performance • Porter’s value chain • Supply chain management and financial statements • Return on total assets minus current liabilities aka Return on capital employed • Infinite Return on total assets – current liabilities • Opportunity cost, cost of capital, gearing and weighted average cost of capital • Shareholder value and supply chain management • EBIT after asset charge • The supply chain ratio • Inter-organizational financial performance • Summary • References • Study question • Study solution

Chapter 02. The big issue – Working capital management • Introduction • The demand for liquidity and net working capital • Net working capital • Liquidity • The cash-to-cash cycle • Working capital management and firm performance • Working capital management • Who owns working capital management? • The limitations of working capital ratios • Financially sustainable supply chains • Summary • References • Study questions • Study solutions

Chapter 03. The flows – Towards an integrated view of supply chain processes • Introduction • The evolution of supply chain management • Supply chain management levels • Physical flow • Information flow • Financial flow • Orchestrating the three flows • Linkages and dependences • The importance of managing cash flow • Functional integration • Summary • References • Study question • Study solution

Part Two: The current practice

Chapter 04. The concept – A case for supply chain finance • Introduction • Key definitions and general options • Operating modes of the basic approaches • Scientific background • Transition stages • Network financing philosophy • Economics • Win–win situations • Summary • References • Study questions

Chapter 05. The ecosystem – Who is involved in supply chain finance? • Introduction • Users of SCF • Logistics service providers • Financial service providers • SCF platform providers • Consultants • Advisers • Industry and professional associations • Governments and other public bodies • Academia • Summary • References • Study question

Chapter 06. The value proposition – Solutions for supply chain finance • Introduction • Accounts payable solutions • Accounts receivable solutions • Inventory financing • Other solutions • Business case • Selection and decision trees • Supply chain programmes with an SCF impact • Summary • References

Chapter 07. The implementation – Bringing supply chain finance programmes to life • Introduction • Typical pitfalls • Implementation guidelines • Risk reduction approaches • Summary • References • Study question

Part Three: The future

Chapter 08. The global setting – Supply chain finance in the context of cultural and geographical dispersion • Introduction • Chinese financing and supply chain finance • Islamic financing and supply chain finance • Western SME financing and supply chain finance • Summary • References • Study question

Chapter 09. The look beyond – Factors impacting the future of supply chain finance • Introduction • The dark side – tax issues: why direct and indirect taxes should be considered in SCF • The bright side – corporate social responsibility: is there financial fair play in SCM? • The smart side – Artificial intelligence: How can new technologies be harnessed to enhance decision making in SCF? • The tech side – Blockchain technology: Can fintech companies bring SCF to the next level? • The prevision – Possible trends: what to consider in prospective SCF programmes • Recommendations on future prospects for SCF • References • Study question

Index

About the Authors:

Simon Templar is a qualified accountant with 20 years’ industry experience as well as a Lecturer at the Centre for Logistics and Supply Chain Management at Cranfield School of Management.

Erik Hofmann is Head of Supply Chain Finance-Lab at the University of St.Gallen in Switzerland. He is also Director of the Institute of Supply Chain Management (ISCM-HSG) and Boardmember of the Supply Chain Finance Community (SCFC).

Charles Findlay is an experienced business strategy, supply chain and procurement consultant, an angel investor and a Director of State of Flux.

Target Audience:

People in supply chain finance, senior supply chain practitioners, researchers and students.