A brief introduction to the supply chain finance product
First, concept
The supply chain finance, or SCF, is a financial service that rounds core enterprise, manages the flows of funds and goods of SMEs, changes the uncontrollable risk of an individual enterprise into the controllable risk of the whole of supply chain enterprises and minimizes the risk by obtaining all kinds of information. Because the socialized way of production is continuously deepening, the credit sale has become the essential way of the bargain in the market competition, suppliers in the upper stream of the supply chain can hardly get the fund support of the bank through the "traditional" credit type, and the fund shortage would directly cause the stagnation of the follow-up link, even "chain broken". The enterprises in the supply chain will maintain the existence of the supply chain they are in, raising the effect of the supply chain funds operation, lowering the whole management cost of the supply chain, and
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Currently the government, large state-owners enterprise, high-quality listed company and large private capital, etc. are approved by the NewUnion as core enterprises.
2, transaction authenticity
The “supply chain finance" infuses the funds to the relatively vulnerable kit businesses in the upstream and downstream chains, which needs to have the real transaction background. Due diligence on the trade is expected early, carrying out the post-lending management of the flows of funds and goods, thus, can the uncontrollable risk of the individual enterprise be changed into the controllable risk of the whole of supply chain
On the same note, it is well acknowledged that the competitiveness of any organization fundamentally depends on the workforce. Indeed, the workforce is recognized as the heart or living organism of any organization including hotels. It goes without saying that there is minimum likelihood that a restaurant where workers operate in unsafe conditions or are mistreated will offer services and products of the highest quality. Scholars note that employees always desire to work in institutions or restaurants that have high standards of integrity and strive to do the appropriate thing (Fox & Vorley, 2004 pp. 33). This is especially so for the new generation workforce, as well as in attracting the best talent in the industry. A reputation for responsibility and integrity has been recognized as crucial in motivating, as well as recruiting staff especially considering that individuals care about the principles and values that their employers wish to uphold. Scholars note that operating voluntarily to high ethical standards pertaining to environment and social responsibility can result in competitive advantage (Schlegelmilch et al, 2004, pp. pp 254). Customers and civil society groups have been increasingly vigilant in determining whether there is an ethical lapse in the manner in which employees are treated within the supply chain of any organization (Fox & Vorley, 2004 pp. 33). In fact, they have been pressurizing restaurants and other business entities to cut ties with any organization in their supply chain that is not ethical in its treatment of employees. Scholars note that the impression that a restaurant or business entity would create in terms of public relations both on the stakeholders and the customers is highly dependent on the ac...
Costco Wholesale Corporation was an uncommon type of retailers called wholesale clubs. These clubs differentiated themselves from other retailer by requiring annual membership purchase. Especially in case of Costco, their target market is wealthier clientele of small business owners and middle class shoppers. They are now known as a low cost or discount retailer where they sell products in bulk with limited brands and their own brand. The company is competing with stores like Wal-Mart, SAM’s, BJ’s, and Sears. The case begins with an individual shareholder, Margarita Torres, who first purchased shares in 1997 and who is trying to evaluate the operational performance of the business in order to make a decision rather or not purchase more shares
Sustainability and Logistics are the factors that many firms try to achieve these days. With the integration of aforementioned factors, the firms can be able to achieve in cost reduction, environmental preservation, green logistics, and efficient environmental resource usage. Food industry is one of the industries that nowadays need sustainable logistics in order to save costs and preserve the surrounded circumstance.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
The Home Depot Supply Chain Management model is based on integrated inventory management through a centralized network of 20 distribution centers, called Rapid Deployment Centers (RDCs) and three Direct Fulfillment Centers (DFCs) aimed at the e-commerce market (Bond, 2015). Orders are processed and managed to meet current and forecasted demands, sent to the regional RDCs, which service approximately 100 stores each, and sent to retail outlets to meet stock requirements (Bond, 2015). Direct Fulfillment Centers are e-commerce distribution systems. Home Depot delivers within a two-day timeframe to 90% of US based customers, and the system also leverages in store stock for same day pick-up (Bond,
Before we start, we would like to briefly introduce the definitions of Supply Chain and Supply Chain Management (SCM).
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Kersten, W., & Bemeleit, B. (2006). Managing risks in supply chains: How to build reliable collaboration in logistics. Berlin: Erich Schmidt.
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
An increasing number of countries are encouraging investments with specific guidelines toward economic goals. MNCs may be expected to create local employment, transfer technology, generate export sales, stimulate growth and development of the local industry.
In all, supply chain operation management has helped many global companies in handling and distributing their products as it is a one-stop solution provider from one warehouse direct to end user. By building trust among the trading partners with effective communications would improve performance metrics both the company and the solutions provider.
A supply chain is an arrangement of associations, individuals, exercises, data, and assets included in moving an item or administration from supplier to client. Supply chain exercises convert regular assets, crude materials, and parts into a completed item that is conveyed to the end client. In advanced supply chain frameworks, utilized items might re-enter the supply chain sometime or another where lingering quality is recyclable. Supply chains connect value chains. A common supply chain starts with the natural, organic, and political regulation of characteristic assets, emulated by the human extraction of crude material, and incorporates a few creation interfaces before proceeding onward to many layers of storage houses of steadily diminishing size and progressively remote geological areas, and at last arriving at the customer.
19. Sodhi, Sunil Chopra and ManMohan S. Managing Risk to Avoid Supply Chain Breakdown. MITSloan Management Review. [Online] October 15, 2004. [Cited: February 25, 2010.] http://sloanreview.mit.edu/the-magazine/articles/2004/fall/46109/managing-risk-to-avoid-supplychain-breakdown/.