Supply Chain Finance, a New Approach to Improve Working Capital within the Supply Chain

Document Type : Research Paper

Authors

1 PhD student of Industrial Engineering, School of Industries, Tarbiat Modares University, Tehran, Iran

2 Assistant Professor, Department of Industrial Engineering, School of Industries, Tarbiat Modares University, Tehran, Iran

Abstract

Supply chain finance includes a set of innovative solutions to improve working capital in a supply chain. The purpose of this study is to provide a comprehensive framework for designing supply chain financial strategies by combining a finance-oriented perspective and a supply chain-oriented perspective, simultaneously. To achieve the research objective, the seven-step model proposed by Sandelowski and Barroso was used to analyze the content of the articles. The statistical population of this research includes international publications in the field of supply chain finance between 2000 and 2021. After collecting the related articles, the relevant codes were extracted and finally the reliability of the coding was confirmed by calculating the Cohen's kappa coefficient. According to the classification of codes extracted from selected articles, the components affecting the design and implementation of supply chain finance strategies were identified. This framework consists of 5 main categories including supply chain, financing instruments, actors, enablers and inhibitors and modeling. The reliability of this coding was also confirmed at the 95% confidence level by calculating the kappa index. The results of this study show that although several supply chain finance instruments are designed based on accounts receivable and accounts payable techniques, internal financing strategies through the use of surplus funds within the supply chain are not well developed. Also, based on the country's banking industry's need to increase income, in the modeling of external supply chain finance solutions, commercial banks can maximize their profits along with supply chain members at a rate higher than the risk-free interest rate. 

Keywords

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Journal of Industrial Engineering Research in Production Systems
Volume 10, Issue 21
January 0
Pages 71-91

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