Financial supply chain management

Abstract

To effectively manage a supply chain, we should no longer focus on physical flow and informational flow only, but also the financial flow. The financial supply chain management (FSCM) extracts capital tied to the raw material, work-in-process, inventory in transit, and accounts receivable (accounts payable). In this paper we review a set of supply chain financing solutions tailored by the financial institutions, and introduce a few quantitative works from the operations research society. The survey reveals the benefits of actively managing the financial supply chain and highlights the quantitative decision-making process in FSCM. Moreover, we propose several interesting problems in FSCM which are remained to be explored.