A Collaborative Approach to Financing Supply Chain Investments

Competitive advantage is achieved by the entire supply chain, with a focus on improving information, finance, and goods flows. To encourage strategic investments and avoid supply chain disruptions, a model is developed in which supply chain members leverage their financial and operational capabilities to realize these investments and share costs, risks, and benefits.

Format: Paperback / softback
Length: 222 pages
Publication date: 01 August 2022
Publisher: Springer-Verlag Berlin and Heidelberg GmbH & Co. KG

Competitive advantage is not solely attained by a single company, but rather by the entire supply chain, with a primary emphasis on enhancing the seamless flow of information, finance, and goods. To achieve this, strategic investments are necessary, often involving long-term, capital-intensive endeavors that are tailored to specific relationships and carry inherent risks. The recent financial or COVID-19 crisis has further heightened banks' risk aversion, making it more costly and challenging for supply chain members to finance risky ventures or secure external financing. Supply chain finance, as a relatively new field, aims to improve financial outcomes through collaborative efforts. Given the financial constraints faced by suppliers, there is a significant likelihood of supply chain disruptions arising from the insolvency of the financing party or the failure of investments to materialize. To promote strategic investments and mitigate disruptions, a model is proposed that leverages the financial and operational capabilities of supply chain members. This model fosters collaboration, enabling members to invest in mutually beneficial projects while sharing costs, risks, and benefits based on their respective contributions. The proposed model is grounded in a structured coalition game with transferable utility, which identifies the most suitable supply chain members to finance investments without compromising the stability of the supply chain.

Weight: 323g
Dimension: 210 x 148 (mm)
ISBN-13: 9783658384036
Edition number: 1st ed. 2022