Financial Supply Chain Management

Framework SCF and Smart Finance

Framework SCF and Smart Finance
© Photo Fraunhofer IML

Framework SCF and Smart Finance

The Situation:

  • Increasing pressure for suppliers to meet (short-term) liquidity requirements with a lack of access to capital at the same time
  • Increasing producer (OEM) requirements and conditions for suppliers and sup-suppliers
  • Latest Regulations (e.g. Basel III) increase the financial costs, because of higher credit-worthiness and risk classification
  • Frequent imbalance between available financial needs and expected finance costs: companies with higher financial needs face higher financial cost

Our Solution:

  • Integrated management of commodity and financial flows along the supply chain with systematic integration of financial service providers
  • Long term goal: improvement of the financial access, decrease the costs and risks of financing, reduction of working capital, decreasing the supplier risks
  • These approaches are especially for SME’s of great importance

Your Benefit:

  • Strengthening of the supply chain through win-win situations for all parties:
    • Producer: security of supply, reducing the supplier risks
    • Supplier: supply ability, reducing financing risks, increase the ability to staY competitive
    • Financial service provider: transparent supply chain, reduction of margin risks, new business models

 

Bridging the Gap

Smart Finance

Smart Finance is working on the alignment of financial and material flows. The use of new technologies for the digitalization of financial flows such as Smart Contracts and Blockchains or Smart Payment (B2B) for digitizing transaction processes provides substantial advantages for companies that are working in the field of Smart Finance.

 

Ensuring Liquidity

inclusive Supply Chain Finance

Inclusive Supply Chain Finance (iSCF) is a relatively new tool for Financial Supply Chain Management. iSCF releases liquidity tied-up in the Supply Chain and creates advantages for all players along the value chain.