Financial Supply Chain & its Implementation in the Banking Sectors of Bangladesh

International Journal of Supply Chain Management, 2020

The issue of supply chain management has been raised for nearly three decades, and based on available statistics, countries and organizations that have applied this knowledge have made significant progress in their respective fields and have made huge profits and large financial savings. In this study, while examining the existing infrastructure and the needs of the bank to enter the financing industry as one of the links in the supply chain of banks, the current state of the capital market and financing companies to the title of financing leaders was examined. Also, the profitability of financing companies and their types of services were studied and various methods of entering the industry were studied. In this regard, the strengths and weaknesses of entering the financing market as well as the opportunities and threats ahead were examined. In the end, the scheme of received commissions and hypothetical profit was proposed. One mechanism used to establish good supply chain managem...

Project E-Society: Building Bricks, 2006

Information systems have developed along the supply chain to support logistics management in all types of industries. Most of this effort has been focused at reducing the levels of working capital by increasing the efficiency of information flow from market to raw materials suppliers. Similar developments have also occurred to support other business processes, for example connecting together new product design and marketing databases to create virtual corporations. Electronic commerce and associated technologies such as ED1 are the norm in advanced supply chains and it is common for their use to be mandatory when trading with large companies. The manufacturing of a product is now seen as a whole process across the supply chain rather than a series of separate operations managed and controlled by different organisations. The management of logistics has been fundamentally re-engineered and designed to focus on quality and time-based strategies. However developments in the handling of financial information between functions within companies and across organisational boundaries have lagged far behind the developments in logistics management. This paper explores the potential benefits of cooperative relationships in the financial supply chain to reduce the time delays and increase the level of certainty regarding financial transactions between separate organisations. The financial benefits are estimated using published data to provide a potential saving of 3.8% of the value of the transaction. An organizational model is presented of likely future developments and steps that can be taken by the financial Please use the folloi~ ing for mat 11 hen cltlng this chapter Blackman, I D. service industry to benefit as integrated providers of financial services to supply chains and the areas for initial implementation are outlined.

International Journal of Supply Chain Management, 2018

The present study aims to examine the idea of supply chain management in the financial institutions like banks in the region of Indonesia. After the detailed examination of existing literature current research work has developed a model for the supply chain in financial perspective with its physical implication as well. By focusing on 5 multinational banking firms, current research work has studied the causal association between the SCM and banking sector for their performance. Findings of the study explain that both SCM and working of financial institutions are highly linked to each other. In short, SCM is a meaningful tool for the banking firms or the organizational performance and various departmental heads are very much aware to SCM practices for the greater banking performance. The core limitations of the study are very limited sample size and just focusing on the one selected banking category (International banks). However, the practical implications of the study are very much significant.

Modern Applied Science, 2016

In current age, e-commerce does not just imply online buying and selling, but implies an efficient business throughout business levels, in which supply chain management can be regarded as the major pillar. The aim of this survey is to study effect of use of electronic banking services and important instruments of e-banking on performance and dimensions of supply chain performance at the first level of the SCOR model in electronics businesses. The present study is an applied research type in terms of aim, which is categorized as descriptive correlation in terms of data collection. The statistical population consists of electric supplies stores in Bushehr, of which 107 stores were selected as sample group using simple random sampling method. The questionnaire has been used as data collection instrument, that its validity has been confirmed through face and content validity through Cronbach's alpha. To analyze data, structural equation modeling using software Lisrel was used. Findings of the present study indicate that the use of e-banking services has a significant effect on performance of supply chain management. Further, among all devices of e-banking services except for POS (Point of Sale) and mobile banking, rest of the devices have a significant effect on performance of supply chain management.

IFIP International Federation for Information Processing, 2006

Information systems have developed along the supply chain to support logistics management in all types of industries. Most of this effort has been focused at reducing the levels of working capital by increasing the efficiency of information flow from market to raw materials suppliers. Similar developments have also occurred to support other business processes, for example connecting together new product design and marketing databases to create virtual corporations. Electronic commerce and associated technologies such as ED1 are the norm in advanced supply chains and it is common for their use to be mandatory when trading with large companies. The manufacturing of a product is now seen as a whole process across the supply chain rather than a series of separate operations managed and controlled by different organisations. The management of logistics has been fundamentally re-engineered and designed to focus on quality and time-based strategies. However developments in the handling of financial information between functions within companies and across organisational boundaries have lagged far behind the developments in logistics management. This paper explores the potential benefits of cooperative relationships in the financial supply chain to reduce the time delays and increase the level of certainty regarding financial transactions between separate organisations. The financial benefits are estimated using published data to provide a potential saving of 3.8% of the value of the transaction. An organizational model is presented of likely future developments and steps that can be taken by the financial Please use the folloi~ ing for mat 11 hen cltlng this chapter Blackman, I D .

International Journal of Supply Chain Management, 2020

— This study examines the role of profitability in mediating the effects of supply chain on market structure, GDP growth, inflation rates and exchange rates. This research was conducted at Bank Indonesia of all banking companies namely the National Non-Foreign Exchange Private Bank in Indonesia. Based on a purposive sampling technique, the number of samples (n) from data time series every year during the 2013-2017 period is 15 company samples, so the total sample of research for 5 years is 75 observations. The analysis used in this study is Path analysis or path analysis. Based on the analysis, overall credit risk at Non-Foreign Exchange Commercial Banks during the 2013-2017 period was influenced by internal factors (capital and liquidity ratios) and external factors (GDP growth) with Profitability as Moderating that occurred between the ratio of capital, liquidity and GDP growth to risk credit. Supply chain strategy has a significant positive effect on profitability at Non-Foreign ...

Research Journal of Finance and Accounting, 2019

Expansive economic, production and commercial development today has made businesses and enterprises to have active presence and contribution in network-based and chain economy. Although focusing on this approach has brought some privileges and productivities for the firms which are members of networks and supply chains, it has been accompanied by various problems and complexities for financial crisis management, cash flow and flow capital amount of the foundations and their commercial partners. To overcome such problem, besides developing the concepts of supply chain management and logistics, Financial Supply Chain Management (FSCM) was also promoted to minimize inefficiencies of financial flow in supply chain using financial, engineering and management approaches, and to provide an effective management ground for cash inventory and flow capital all throughout the supply chain by making use of various tools and techniques of supply chain finance and/or SCF. Hence, by changing approach and role of financial services provider from just supplier of financial resources as the commercial partners of economic and commercial firms, it caused that a major part of managerial duties of financial flow of chain enterprises could be defined in collaboration with financial services provider, and they may be executed in a more desirable manner considering the capacities and capabilities of banks and financial institutes. Thus, regarding the significance of financial flow management in the chain and benefitting the principles and fundamentals of research by fact finding and case study, it was tried to present a framework to make use of financial flow management and its principles and fundamentals effectively by reviewing evidences as well as applicable experiences in this area. The present paper emphasized that as logistic services providers are responsible in supply chains to improve inventory level; financial services providers also have the same role concerning liquidity level in the chains. Therefore, by making coordination and integrity in the inventory flows, information and financial flows through supply chain, we can handle financial risks and provide more stable value flow in supply chain till distribution, and create a ground better for materializing objectives of the firms which are members of supply chain.

Operations and Supply Chain Management: An International Journal

Recently, the number of Vietnamese small and medium enterprises (SMEs) is rapidly growing. Since most of them are run under owner's capital, they easily face cash constraint situation during their operational life cycle. Hence, the demand for Vietnamese SMEs to optimize their liquidity has been increasing and becoming a top concern. Previous studies in the supply chain field focus much on the physical flow of products/services and informational flow. Meanwhile, the financial aspect as well as its sustainability in the supply chain has been received more attention after the financial crisis of 2008. This even gets more crucial when the uncertainties in the global economy and financial markets increase pressure on businesses' cash as well as their supply chains (SC). Considering the role of this concept and its potential, this study tries to explore and examine the level of understanding about the monetary supply chain of SMEs based in Danang city and how they can access financial sources for more stability and sustainable business. The truth is many SMEs face existing problems to access financial sources like banks as well as establishing a long-lasting SC. Without a doubt the fund-raising information infrastructure in Danang city is not well developed, and local businesses still depend on financial sources from banks. Also, the connection between buyers and suppliers is still weak as they do not invest much in the infrastructure or production line to create a common ground with the business's product characteristics. In addition to that, this paper suggests some implications for the development of the local SMEs in general and their supply chains in particular.

2018

The concept of Supply Chain Finance has emerged through the globalization of trade. The common sense within a supply chain is that suppliers are trying to receive their payments as early as possible while buyers are increasing their payment terms. Supply Chain Finance attempts to cope with this problem and creates opportunities for all parties. With the development of Supply Chain Management, two approaches gained the most recognition; Working Capital Management and Supply Chain Finance. Both are considered drivers for a financially stable supply chain. A Supply Chain Finance solution is able to create a 'win-win' situation for both buyer and supplier by giving the buyer the opportunity to extent payment terms and pay the supplier in advance. This process allows all parties to free up operating working capital and provide financing in favour of the supplier. A Supply Chain Finance solution implementation includes three factors: First, a company must be internally in line with the solution. Secondly, the right financial provider (bank) must be identified. Lastly, there has to be the opportunity for open account trade. Recent papers confirm that the credit crunch of 2009 was a main driver for Supply Chain Finance. Financial providers and organizations have become aware that it is of great importance to manage their capital and especially the part tied to the supply chain. This phenomenon enhanced the popularity of SCF. Supply Chain Finance attempts to cope with this problem and creates opportunities for both parties. SCF has matured yet, there are still some gaps when it comes to a single definition. Furthermore, it appears that suppliers are hesitant to adopt Supply Chain Finance because there is little evidence of the actual cost savings and its benefits. This thesis aims to provide a single definition by reviewing the theory of Supply Chain Finance and provide the reader with an implementation checklist and the benefits of it. The theory will then be backed up by expert interviews.

International Journal of Supply Chain Management, 2019

The main aim behind this empirical research is to investigate the impact of the adoption of the supply chain financial solutions on the supply chain financial flows of manufacturing firms listed in Indonesian Stock Exchange. In addition to that the study has also investigated the moderating role of cash conversion cycle in the relationship between supply chain financial solutions and supply chain financial flows. To achieve the objective of the study we have employed the panel data method and have used the linear repression and hierarchical regression techniques. The final sample comprise of 756 firm year observations over the period of 6 years from 2012-2017.teh findings of the study have shown an agreement with the proposed findings of the study. The cash conversion cycle appears as strong moderator. In author knowledge this is among few pioneering studies on this issue and will be helpful for future policy makings.