Entrepreneurship

Supply Chain Finance

In a globalizing economy, industrial value chains are becoming more complex and involve more countries and providers then ever before.

While goods flows within the chain are increasingly integrated and optimized, information and finance flows tend to remain fragmented. The credit crisis had revealed structural weaknesses. The cost of finance is rising, while suppliers, especially SMEs and those located in developing countries, have difficulties obtaining the credit they need. To address these costs and risks of supply chain disruption, large buyers are increasingly looking to manage the financial supply chain by taking an equally integrated view.

Supply Chain Finance (SCF) deals with approaches and instruments that optimize transactions, working capital and the costs of the extended supply chains. New models could significantly improve access to finance or reduce the need to finance by unlocking the potential from within supply chains instead of relying on external creditors.