Now showing 1 - 9 of 9
  • Publication
    A configurational model for financing the upstream supply chain network
    ( 2023-06-16)
    This research aims to examine the pertinent attributes of supply chain networks that impact upstream supply chain financing, while also creating a model that elucidates these attributes from the perspective of buying companies during the implementation of supply chain financing. To achieve this, the study employs a comprehensive review of existing literature on supply chain financing, yielding insights into the relevant characteristics of supply chain networks that are influential in facilitating financing for upstream suppliers. Moreover, the study provides an extensive comprehension of these characteristics and their interdependencies, accompanied by exemplary approaches to specific configurations of these characteristics. The findings of this study have significant implications for buying companies, as they offer a foundation for the development of more effective approaches to supplier financing at lower levels of the supply chain. By incorporating these identified characteristics, buying companies can enhance overall supply chain resilience and efficiency. Consequently, the study fills a critical knowledge gap by shedding light on the domain of supplier financing at lower levels of the supply chain, thereby contributing to a more comprehensive understanding of supply chain financing dynamics.
  • Publication
    Broadening the purposive scope of supply chain financing: Insights from a focus group of anchor corporations
    ( 2023-04-05)
    The purpose of supply chain financing is evolving from a tool for cost-efficient management of working capital towards an instrument for purpose-driven supply chain management. Sustainable and resilient considerations are increasingly being incorporated into financing arrangements, while digitalization offers opportunities to engage small and medium-sized suppliers in the upstream supply chain. Our research, conducted through multiple focus groups, reveals how large buying companies can leverage purposive usage. While supply chain financing is increasingly becoming a holistic instrument for addressing specific purposes relating to direct suppliers, expanding the impact of supply chain finance to upstream suppliers remains a challenge.
  • Publication
    Artificial Intelligence in Supply Chain Management - Between Aspiration and Reality
    (Cuvillier Verlag, 2023-10-06) ;
    As Artificial Intelligence (AI) continues to revolutionize industries worldwide, its omnipresence becomes increasingly evident in Supply Chain Management (SCM). This Consortium Study, conducted by the Institute of Supply Chain Management (ISCM-HSG) at the University of St.Gallen and its promotional association, examines the integration of AI in SCM and aims to address the gap between expectations and reality. The study provides a knowledge foundation to assist supply chain managers in developing realistic expectations of this technology. Considering the rapid advancement of AI technologies and their potential impact on SCM, this study explores the current state of AI in SCM and analyzes the disparity between expectations and reality. Through a comprehensive market analysis of AI solutions offered in SCM, opportunities for improvement are identified. The study focuses on aligning expectations and reality by fostering a better understanding of the capabilities of AI in SCM. Additionally, the study investigates obstacles to successful AI integration, including data quality, integration challenges, and unrealistic expectations of potential benefits. Through the collaborative efforts of the participating organizations, this Consortium Study offers a collective understanding of the current state of AI in SCM. It serves as a valuable resource for industry professionals, and academia facilitating the successful integration of AI and driving operational excellence in SCM.
  • Publication
    Working Capital Management Study 2021 – In search of the new normal
    ( 2021-10-27)
    Hofmann, Erik
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    “What is normal in times like these?” This question hasn’t just concerned the general public during the COVID-19 crisis. Coronavirus-related effects have also been a big issue for finance and supply chain managers in managing their working capital. The range of challenges facing Swiss companies – both now and in the future – in relation to working capital management (WCM) are quite manifold. While some companies faced liquidity bottlenecks that jeopardized their future, others met unprecedented demand by using partially modified business models, where funding also poses challenges for managers. This requires the management of working capital to be versatile and adaptable. The eighth edition of the WCM Study focuses on this need for realignment. It provides answers to the following questions: How has the management of payables and receivables changed during the COVID-19 crisis in retrospect? What is the current liquidity situation in Swiss companies? And what future trends and developments are expected in WCM? The tendencies identified regarding the future structure of WCM provide an indication of the new normal and serve as a source of inspiration for finance and supply chain managers.
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  • Publication
    A conceptual approach to systematizing mechanisms for financing cash-strapped suppliers in supply networks
    ( 2023-07-19)
    Multi-tier Supply Chain Financing (MTSCF) has been identified as a compelling solution to support the growth and development of small and cash-strapped suppliers, particularly in developing countries. Currently, the research focus on MTSCF is primarily on its technological function, which is based on blockchain technology. However, from a technology-agnostic perspective, MTSCF combines multi-tiered supply chain management with the concept of SCF, which essentially describes the approaches of extending financing mechanisms to the deeper levels of supply chains. In this presentation, existing MTSCF mechanisms are differentiated to develop a systematic framework that can be used to categorize the mechanisms. In this way, the basis for further developing innovative MTSCF solutions is provided
  • Publication
    Exposing Supply Chain Finance Myths – An investigative study
    ( 2022-06)
    Hofmann, Erik
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    Purnelis, Leonia
    A key to success for most companies lies in managing net working capital (NWC), as most supply chains have a tremendous amount of capital tied up. Freeing up this short-term capital has the potential to increase cash flow, release funds for strategic innovations and process improvements, and ultimately enhance the competitiveness of the entire supply chain. For many companies, supply chain finance (SCF) has become essential to achieving these potentials. Steadily evolved from a niche product to a mainstream application, SCF supports companies to unlock significant amounts of cash flow bounded in their intra- and inter-organizational operations. However, do supply chain managers speak and understand the language of corporate treasury and managerial accounting or are they guided by supposed principles whose evidence has long been disproven? Various uncertainties and misconceptions persist in regard to how SCF works and how it is used appropriately in organizations. To provide clarity and transparency for practitioners, this study examines 20 common statements about SCF to determine their degree of truthfulness. Uncovering possible myths will assist companies to communicate the added value of SCF and to raise awareness of this previously underestimated tool.