IDEAS home Printed from https://ideas.repec.org/h/spr/mgmchp/978-3-030-43502-8_10.html
   My bibliography  Save this book chapter

Towards Efficient Financial Supply Chains: How to Leverage Inter-organizational Working Capital by Digitalizing the Financial Flows

In: The Nature of Purchasing

Author

Listed:
  • Lotta Lind

    (ABB Oy)

  • Florian Schupp

    (Jacobs University Bremen)

Abstract

Traditionally, the focus in the supply chains has been on enabling the smooth material and information flows along the chain. However, in recent years, the potential of efficient financial flows and the inter-organizational perspective to working capital (WC) management have received increasing interest among companies as well as researchers. The purpose of this chapter is to illustrate the potential of financial collaboration by proposing a model for WC optimization in the supply chain via payment term adjustments. The model is tested with seven scenarios, which show that remarkable amounts of WC could be released by adjusting and harmonizing the payment terms in the supply chain. The introduced model provides a novel perspective on collaborative WC management in the supply chain by enabling win-win situations with a unique incentive system, sets the supply chain up in a financially lean way and saves capital for real investments. The chapter provides practical support for the optimization of WC at the supply chain level.

Suggested Citation

  • Lotta Lind & Florian Schupp, 2020. "Towards Efficient Financial Supply Chains: How to Leverage Inter-organizational Working Capital by Digitalizing the Financial Flows," Management for Professionals, in: Florian Schupp & Heiko Wöhner (ed.), The Nature of Purchasing, pages 205-232, Springer.
  • Handle: RePEc:spr:mgmchp:978-3-030-43502-8_10
    DOI: 10.1007/978-3-030-43502-8_10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:mgmchp:978-3-030-43502-8_10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.