Development of Financial Supply Chain Management and Supply Chain Finance Model

Document Type : Research Paper

Authors

1 Department of Industrial Engineering, Islamic Azad University Karaj Branch, Alborz, Iran

2 Department of Industrial Engineering, Sharif University of Technology, Tehran, Iran

Abstract

Expansive economic, production and commercial development today has made businesses and enterprises to have active presence and contribution in network-based and chain economy. Although focusing on this approach has brought some privileges and productivities for the firms which are members of networks and supply chains, it has been accompanied by various problems and complexities for financial crisis management, cash flow and flow capital amount of the foundations and their commercial partners. To overcome such problem, besides developing the concepts of supply chain management and logistics, Financial Supply Chain Management (FSCM) was also promoted to minimize inefficiencies of financial flow in supply chain using financial, engineering and management approaches, and to provide an effective management ground for cash inventory and flow capital all throughout the supply chain by making use of various tools and techniques of supply chain finance and/or SCF.
Thus, regarding the significance of financial flow management in the chain and benefitting the principles and fundamentals of research by fact finding and case study, it was tried to present a framework to make use of financial flow management and its principles and fundamentals effectively by reviewing evidences as well as applicable experiences in this area. The present paper emphasized that as logistic services providers are responsible in supply chains to improve inventory level; financial services providers also have the same role concerning liquidity level in the chains. 

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Main Subjects

References

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Journal of Industrial Engineering Research in Production Systems
Volume 4, Issue 9
Special Issue: 11th & 12th International Conference on Industrial Engineering
March 2017
Pages 257-269

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