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3This paper is a deliverable of the research program called SCF 2.0 and supported by TKI-Dinalog1. The foundation setting nature of this paper reflects the ambition of this research project that aims to accele-rate the understanding, development and adoption of supply chain finance models. The goal of SCF 2.0 is to realize substantial benefits for corporates in the areas of operational enhancement, increased supply chain output, cost reductions and risk mitigation.
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Supply chain finance krijgt steeds meer aandacht bij bedrijven als een middel om hun supply chain strategie te ondersteunen. Het gaat hierbij niet alleen om het reduceren van kosten maar ook om het mitigeren van de risico’s in de keten. Wij verwachten dan ook dat vooral bij grote bedrijven de toepassing van supply chain finance modellen sterk zal toenemen in de komende jaren, zowel in kwantiteit, verscheidenheid als in complexiteit. Beleidsmakers bij overheden zijn steeds meer betrokken bij de ontwikkeling en adoptie van supply chain finance modellen en zien het als een mogelijke alternatieve financieringsvorm voor het MKB. Het streven van overheden is daarbij om grote afnemers te bewegen om dergelijke programma’s te faciliteren voor hun MKB leveranciers. Ook ontwikkelingsbanken zoals de IFC en de World Bank zijn de laatste jaren supply chain finance programma’s gestart om met hulp van de sterke partijen in een keten bijvoorbeeld de kleinere leveranciers, coöperatieven en boeren in ontwikkelingslanden toegang te geven tot financiering. Er is tot nu toe nog maar beperkt onderzoek gedaan naar supply chain finance. Het is een veld op het scheidsvlak van finance en supply chain en nog volop in ontwikkeling. Onze doelstelling is om het begrip, de ontwikkeling, en de implementatie van supply chain finance modellen te stimuleren en te versnellen. Hierbij richten we ons op drie dimensies • Supply chain finance voor multinationals; • Supply chain finance voor het MKB; • Supply chain finance voor internationale duurzame ontwikkeling.
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In this paper we explore the relationship between supplier segmentation and the application of supply chain finance. The main research question is how supplier segmentation affects the application of supply chain finance solutions.
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Over the past year, the governance of supplier finance has risen even higher up the agenda for regulators, rating agencies, auditors, and corporates as its perceived role in the high-profile collapse of several corporates comes under scrutiny. The topic of disclosure has become one of more heated debate as global standard setters have responded to calls for more transparency with fast-track upgrades of existing rules. To gain a deeper understanding of how much progress corporates and auditors are making in their preparation for incoming standards, we analysed the 2021 annual reports of 1,000 publicly listed companies that we understand to operate supplier finance programmes. The aim was to document whether and how they disclosed that exposure, and to identify trends, opportunities, and potential challenges they might face in satisfying more stringent standards.
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In the modern Supply Chain Finance landscape, Reverse Factoring is one of the most consolidated business model for working capital financing. However, accounting treatment of Reverse Factoring might affect the balance sheet of large corporate, with disruptive consequences for the programme as a whole. From an accountancy point of view, the issue is whether trade payables should be reclassified as short-term debt within a Reverse Factoring program. International accounting framework do not provide clear guidelines on this matter. Therefore, this volume aims at identify and highlight the factors that are likely to affect reclassification of trade payables within Reverse Factoring, in order to support corporates and service providers towards taking more aware decisions on these matters.
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In this essay Supply Chain Finance (SCF) is introduced based on definitions from Steeman, Hofmann and the European Banking Association. The base of the analysis is from the capital cost model of Pfohl (Volume of Working Capital * Duration * Cost of Capital) and its impact on the Economic Value Added (EVA) according the Rappaport Shareholder Value model. The 3 relevant elements of the working capital (Account Receivable, Inventories and Accounts Payable) are discussed for their impact on: • Static and dynamic liquidity: The corner stones of the conceptual model • Costs of Working Capital (e.g. EVA) Finally the link is made between the transaction (with impact on: Account Receivable, Inventories and Accounts Payable) and the IT-systems in the supply chain or the ERP system within a company. Some outcomes of empirical research is presented, as well as some planned empirical research in the nearest future in India, Spain and Russia.
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The significance of IT platforms are that they facilitate information, communication and new technologies and allow companies to improve efficiency and optimise their supply chain processes. By definition this implies that an IT platform is a cloud-based software which is not installed on a company’s server but is accessible via an Internet browser by using electronic devices. In this article a literature review and a field research (e.g. a case study) are carried out to investigate the role of a ‘real’ IT-platform connecting companies in the supply chain, and to define Supply Chain Finance metrics in terms of the improvement of liquidity and efficiency. In alignment with the outcome of the literature review a case is studied and analysed for the Heering-Holland company as an OEM manufacturer in the supply chain of conditioned poultry transport solutions using the IT platform of TradeCloud.
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Contents: Introduction by the supervisors | Analysing the Military Supply Chain using Big Data Analytics by Addy Negulescu and Niels C. Nanning | Big Data and Supply Chain Management by Martin Novak and Youri Verduijn | The impact of Cross Chain Control Centre on supply chains by Sebastiaan van Dijk and Luc Happee | Effects of Customs and Trade Compliance on Supply Chains by Roberts Šnikvalds and Cillari Sandro | Effects of the Transatlantic Trade and Investment Partnership on developing countries by Ryan van der Schilt and Tyron de Windt | The sustainable and circular supply chain of Zara by Daan Ruha and Martin Slob | Managing first, second and third tier suppliers by Arik Prins and Victor van Randwijk | Impact of Cross Chain Control Center on Supply Chains by Tyson de Groot and Yen Cao | The sustainable and circular supply chains by Sjoerd Brand and Montserrat Saab Vallés | Blockchain technology in the supply chain by Roy Nieuwenburg and Vera Olieman Subjects: The impact of 3D printing on traditional Supply Chains | The impact of Cross Chain Control Centre (4C) on supply chains | Supply Chain Finance and Supply Chain Management | Ethics and Supply Chain Management | Big Data and Supply Chain Management | Block chains and Supply Chain Management | Managing first, second and third tier suppliers | The sustainable and circular supply chains | Online shopping: challenge for supply chains? | Effects of customs and trade compliance on Supply Chains (for instance TTIP, CETA) | How to measure the effectiveness of a supply chain?
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