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    IFM Roll No 16: Financial Supply Chain Management - Challenges and Obstacles Abstract

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    Umer Raja
    The document discusses financial supply chain management challenges for small and medium enterprises in the Dutch and Slovakian construction industries. It finds that there are differences in how these companies manage working capital. There are also opportunities to apply financial supply chain management techniques like using electronic invoices and payments to increase efficiency. Adopting a holistic liquidity management approach across departments could help optimize processes. The financial crisis presents an opportunity for companies to rethink their business models and financial supply chain management strategies. Further research is still needed on short-term financial management tools and risk management.

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    IFM Roll No 16: Financial Supply Chain Management - Challenges and Obstacles Abstract

    Uploaded by

    Umer Raja
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    The document discusses financial supply chain management challenges for small and medium enterprises in the Dutch and Slovakian construction industries. It finds that there are differences in how these companies manage working capital. There are also opportunities to apply financial supply chain management techniques like using electronic invoices and payments to increase efficiency. Adopting a holistic liquidity management approach across departments could help optimize processes. The financial crisis presents an opportunity for companies to rethink their business models and financial supply chain management strategies. Further research is still needed on short-term financial management tools and risk management.

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    financial risk management topic.innovative learning adaptability.

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    The document discusses financial supply chain management challenges for small and medium enterprises in the Dutch and Slovakian construction industries. It finds that there are differences in how these companies manage working capital. There are also opportunities to apply financial supply chain management techniques like using electronic invoices and payments to increase efficiency. Adopting a holistic liquidity management approach across departments could help optimize processes. The financial crisis presents an opportunity for companies to rethink their business models and financial supply chain management strategies. Further research is still needed on short-term financial management tools and risk management.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    13 views2 pages

    IFM Roll No 16: Financial Supply Chain Management - Challenges and Obstacles Abstract

    Uploaded by

    Umer Raja
    The document discusses financial supply chain management challenges for small and medium enterprises in the Dutch and Slovakian construction industries. It finds that there are differences in how these companies manage working capital. There are also opportunities to apply financial supply chain management techniques like using electronic invoices and payments to increase efficiency. Adopting a holistic liquidity management approach across departments could help optimize processes. The financial crisis presents an opportunity for companies to rethink their business models and financial supply chain management strategies. Further research is still needed on short-term financial management tools and risk management.

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    IFM Roll no 16

    Peter Kristofik1, Jenny Kok


    ACRN Journal of Entrepreneurship Perspectives Vol. 1, Issue 2, p. 132-143, Nov. 2012 ISSN 2224-9729

    FINANCIAL SUPPLY CHAIN MANAGEMENT CHALLENGES AND OBSTACLES Abstract. Financial supply chain is all about the movement of money along the chain. To optimize these financial processes, Financial Supply Chain Management (FSCM) helps companies looking from a more external point of view to the whole chain. This holistic approach is focusing on collaboration with other parties within the chain. The paper is aimed at finding differences in Working Capital Management (WCM) between Small and Medium sized Enterprises within the Dutch and Slovakian construction industry. Furthermore, the focus of the research is on finding a way a Small and Medium sized Enterprise can improve its WCM. A Case Study research method is used, because a rich understanding of the Context of the research is gained. The primary data of this research is obtained via questionnaires whereas the secondary data is collected and gathered via databases. Research has shown that there are big differences in the way working capital is optimized between SMEs within the Dutch and Slovakian construction industry as well as opportunities for application of FSCM.

    Conclusion Effective supply chain management requires a different approach to doing business than many companies have had in the past. In particular, collaboration and transfer of information between different departments managing each element of the supply chain is a key. A holistic approach to liquidity management may enhance process efficiency due to the use of electronic invoices and electronic payment. Finance divisions need to be more innovative in the ways they raise finance and manage liquidity. By implementing electronic data transfer, companies can increase their competitiveness, freeing up working capital and reducing risk. Companies which ensure that their internal processes are aligned with the new opportunities are likely to derive the greatest benefits. Since the financial crisis financial markets are failing with increasing number of distortions. Companies can use the financial crisis as an opportunity to rethink their business model. Both the Dutch and the Slovak construction industry may benefit by paying more attention towards their financial supply chain management. This requires also further development of research in the area of short term financial management and tools for a more accurate risk management.

    IFM

    The Link between Supply Chain Fit and Financial Performance of the Firm Roll no 23 Stephan M. Wagner Journal of Operations Management, Jan 2012
    Abstract The bottom-line financial impact of supply chain management has been of continuing interest. Building on the operations strategy literature, Fishers (1997) conceptual framework, a survey of 259 U.S. and European manufacturing firms, and secondary financial data, we investigate the relationship between supply chain fit (i.e., strategic consistencies between the products supply and demand uncertainty and the underlying supply chain design) and the financial performance of the firm. The findings indicate that the higher the supply chain fit, the higher the Return on Assets (ROA) of the firm, and that firms with a negative misfit show a lower performance than firms with a positive misfit. Conclusion The purpose of this study was to investigate and quantify the impact of supply chain fit on the financial Performance of the firm. To achieve supply chain fit, firms must consider three basic steps (Chopra and Meindl, 2010; Lee, 2002): First, they need to understand demand and supply uncertainty of their products and associated customer needs. Second, they need to understand the characteristics and capabilities of their supply chain, that is, the position along the efficiencyresponsiveness continuum. Third, they need to ensure that the degree of supply chain responsiveness (supply chain design characteristics and capabilities) is consistent with the products supply and demand uncertainty. With such a match, [t]he goal is to target high responsiveness for a supply chain facing high implied uncertainty, and efficiency for a supply chain facing low implied uncertainty.(Chopra and Meindl, 2010, p. 45) Corporate practice can benefit from the results of our research. First, supply chain fit, that is, the match between the products supply and demand uncertainty and supply chain responsiveness, is significantly related to the financial performance of the firm. Since only a small number of firms in our sample achieve a perfect fit between these two dimensions, most firms have the potential to initiate the alignment of their supply chains with their products. To do so, firms need to understand the supply and demand characteristics of the products they offer, the characteristics and capabilities of their supply chains, and ensure that the degree of supply chain responsiveness is consistent with the products supply and demand uncertainty (Chopra and Meindl, 2010). The product characteristics and supply chain designs summarized in Tables 1 and 2 can be a starting point for such an initiative. Second, while unquestionable firms should strive to design their supply chains to ideally match their products supply and demand uncertainty, they should also take into account that negative misfit is less desirable than positive misfit. Instead of overinvesting into measures to increase the responsiveness of the supply chain (e.g., through postponement), they should rather invest into measures to increase the efficiency of the supply chain (e.g., through inventory reductions). The resulting positive misfit will be related to higher ROA than a potential negative misfit. Our study provides good arguments for supply chain and operations managers that supply chain management is not confined to operational issues (such as lead time Reduction, capacity utilization etc.), but that it has tangible, bottom-line financial implications and therefore has a strategic role to play. Therefore, our study will help managers to underline the strategic relevance of supply chain management in the firm.

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