Enhanced descriptions from Syndetics:

The book "Supply Chain Finance Solutions" offers orientation in the new discipline of Supply Chain Finance (SCF) by investigating the need for and nature of SCF, along with its characteristics and enablers. Due to the novelty of the Supply Chain Finance approach, there are still many knowledge gaps. This lack of research leads to uncertainties about the successful implementation of SCF solutions within companies as there is little quantified evidence on the achievable cost savings and other potential benefits. The authors close this gap by providing the latest information on business concepts and the SCF market. Based on a sample SCF model, the worldwide market size for such solutions and potential cost savings to companies engaged in SCF are analyzed. The work underlines the generally agreed-upon attractiveness and future relevance of SCF solutions by creating win-win situations; for all actors in the end-to-end supply chain as well as for external service providers.

Table of contents provided by Syndetics

• 1 Introduction (p. 1)
• 1.1 Problem Definition and Objectives of the Study (p. 1)
• 1.2 Course of Investigation (p. 3)
• References (p. 3)
• 2 Relevance of WCM and Its Weaknesses (p. 5)
• 2.1 Impact of Working Capital on Enterprise Value (p. 5)
• 2.2 Deficiencies in Wcm (p. 8)
• 2.3 Traditional Methods for Improving Working Capital (p. 10)
• References (p. 11)
• 3 Characteristics of Scf (p. 13)
• 3.1 Background (p. 13)
• 3.2 Relevant Supply Chain Flows (p. 14)
• 3.3 Definition of Scf (p. 15)
• 3.4 Challenges within Financial Supply Chains (p. 17)
• 3.4.1 Manual Collection Processes (p. 18)
• 3.4.2 Lack of Timely Information (p. 18)
• 3.4.3 Delays in Invoice Reconciliation (p. 18)
• 3.4.4 Credit Limit Management (p. 19)
• 3.4.5 Need for Action (p. 19)
• 3.5 Drivers and Enablers of Scf (p. 19)
• 3.5.1 Globalization and Trade Growth (p. 20)
• 3.5.2 Increased Competition (p. 21)
• 3.5.3 Supply Chain Management (p. 21)
• 3.5.4 Change of Trade Paradigms (p. 21)
• 3.5.5 Revenue Streams (p. 22)
• 3.5.6 Intensified Compliance Regulations (p. 23)
• 3.5.7 New Enabling Technologies (p. 23)
• 3.5.8 Summary (p. 23)
• References (p. 24)
• 4 Segmentation of SCF Solutions (p. 27)
• 4.1 Geographic Boundaries (p. 27)
• 4.2 Payment Methods (p. 28)
• 4.2.1 Letter of Credit (p. 28)
• 4.2.2 Open Account (p. 28)
• 4.3 Market Players (p. 29)
• 4.3.1 Focal Company (p. 30)
• 4.3.2 Suppliers and Buyers (p. 30)
• 4.3.3 Funders and Risk Takers (p. 30)
• 4.3.4 Scf Service Providers (p. 33)
• 4.4 Platform Types (p. 36)
• 4.4.1 L/C and O/A platforms (p. 36)
• 4.4.2 Risk Management Systems (p. 37)
• 4.4.3 Third Party Financing Platforms (p. 38)
• References (p. 40)
• 5 Value Proposition of Scf (p. 41)
• 5.1 Funding, Liquidity and Working Capital Savings (p. 41)
• 5.2 Risk Cost Savings (p. 42)
• 5.3 Administrative Cost Savings (p. 43)
• 5.4 Reporting Benefits (p. 44)
• 5.5 Enhancing Supply Chain Relationships (p. 44)
• 5.6 Enhanced Compliance Worthiness (p. 44)
• 5.7 Summary of Benefits for Supply Chain Constituents (p. 45)
• References (p. 45)
• 6 The Market Size for SCF Solutions (p. 47)
• 6.1 Company Characteristics (p. 47)
• 6.1.1 Industry Affiliation (p. 48)
• 6.1.2 Size of the Company (p. 50)
• 6.2 Commercial Relationship Characteristics (p. 51)
• 6.2.1 Supply Chain Design (p. 51)
• 6.2.2 Supply Chain Risks (p. 51)
• 6.2.3 Supply Chain Transaction Characteristics (p. 53)
• 6.3 Cost-benefit Analysis of SCF Solutions (p. 53)
• 6.3.1 Determination of the Relevant Parameters (p. 55)
• 6.3.2 Cost-benefit Analysis to the Importer (p. 61)
• 6.3.3 Cost-benefit Analysis to the Exporter (p. 61)
• 6.4 Application of the SCF Model (p. 62)
• 6.4.1 Estimation of Relevant Trade Flows (p. 63)
• 6.4.2 Tangible Benefits of an SCF Solution (p. 63)
• 6.4.3 Import SCF Model (p. 65)
• 6.4.4 Export SCF Model (p. 65)
• 6.5 Summary of Results (p. 67)
• 6.6 Interpretation of Results (p. 67)
• References (p. 69)
• 7 Concluding Remarks (p. 71)
• 7.1 Discussion (p. 71)
• 7.2 Outlook (p. 73)
• References (p. 73)
• Annex (p. 75)

Author notes provided by Syndetics

Dr. Erik Hofmann :
Erik Hofmann ("Dr. rer. pol." from University of Technology, Darmstadt, Germany) is vice president of the Chair for Logistics Management (LOG-HSG) as well as a senior lecturer at the University of St.Gallen and guest professor at Dresden University of Technology. His primary research focuses on the intersections of logistics and supply chain management on the one side and finance- and performance-issues on the other side. This research stream encompasses performance measurement in supply chains, supply chain finance, mergers & acquisitions in logistics, and working capital management in supply chains. He has published in several logistics and SCM journals and is co-editor of the Handbook ' Kontraktlogistik '. Erik Hofmann can be contacted via: erik.hofmann@unisg.ch.
Oliver Belin:
Oliver Belin holds a master degree from the University of St.Gallen and has several years experience in supply chain finance (SCF). He worked for leading institutions in trade finance where he was responsible for the set up of sophisticated portfolio management tools and the risk management of several SCF programs. Recently he setup his own company specialized in SCF solutions targeting large, cross-border trade flows for leading, multinational organizations. Oliver Belin can be contacted via: o.belin@swisscocap.com.