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Win-win and no-win situations in supply chain finance: The case of accounts receivable programs
Journal
Supply Chain Forum: An International Journal
ISSN
1625-8312
ISSN-Digital
1624-6039
Type
journal article
Date Issued
2016-03-14
Author(s)
Hofmann, Erik
Zumsteg, Stefan
Abstract
The paper aims to investigate whether supply chain finance (SCF) solutions have the potential to create tripartite value in the international trade arena. Distinguishing three actors, this value proposition is examined by modeling an accounts receivable platform (ARP) program. The setting is adapted to a supply chain with an OECD supplier and non-OECD buyers. The paper identifies trends in parameter values that bring about various situations, in which all parties benefit sufficiently in any total win situation. However, they are most likely limited to trade flows of higher valued goods that are frequently traded. For the supplier acting as the focal company and the financial institutions, these programs are only feasible if a large number of participants (buying customers) can be convinced to take part in the financing alternative. The resulting benefits are unlikely to be shared on even terms between the actors. If successfully implemented, the focal company will benefit most from the supply chain finance solution.
Project(s)
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
Taylor & Francis Online
Publisher place
London
Volume
16
Number
3
Start page
30
End page
50
Subject(s)
Eprints ID
248126