Supply Chain Finance techniques and risks

Supply Chain Finance is as a portfolio of financing and risk mitigation practices and techniques to optimize the management of the working capital and liquidity invested in supply chain processes and transactions. SCF techniques existing on the market can be divided into three categories: receivab...

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Main Author: Francesca Querci
Format: Article
Language:English
Published: AIFIRM 2023-04-01
Series:Risk Management Magazine
Subjects:
Online Access:https://www.aifirm.it/wp-content/uploads/2023/04/RMM-2023-01-Excerpt-1.pdf
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author Francesca Querci
author_facet Francesca Querci
author_sort Francesca Querci
collection DOAJ
description Supply Chain Finance is as a portfolio of financing and risk mitigation practices and techniques to optimize the management of the working capital and liquidity invested in supply chain processes and transactions. SCF techniques existing on the market can be divided into three categories: receivable purchase, advanced payable, and loans. These financing solutions are significantly ‘eventdriven’, since they aim at satisfying the financial requirements of buyers and sellers, that are triggered by purchase orders, invoices, receivables, other claims, and related pre-shipment and post-shipment processes along the increasingly complex supply chains in which they are involved. Along the way from raw material procurement to production, sales and end-users, several source of risks can threaten the possibility of completing the transactions and the regular functioning of supply chain finance. Digitization can help in managing these risks, facilitating the control of the factors underlying them.
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spelling doaj.art-c5bd26cac465415abf703b4a674204b32023-04-30T21:59:46ZengAIFIRMRisk Management Magazine2612-36652724-21532023-04-0118141810.47473/2020rmm0120Supply Chain Finance techniques and risks Francesca Querci0University of Genoa Italy Supply Chain Finance is as a portfolio of financing and risk mitigation practices and techniques to optimize the management of the working capital and liquidity invested in supply chain processes and transactions. SCF techniques existing on the market can be divided into three categories: receivable purchase, advanced payable, and loans. These financing solutions are significantly ‘eventdriven’, since they aim at satisfying the financial requirements of buyers and sellers, that are triggered by purchase orders, invoices, receivables, other claims, and related pre-shipment and post-shipment processes along the increasingly complex supply chains in which they are involved. Along the way from raw material procurement to production, sales and end-users, several source of risks can threaten the possibility of completing the transactions and the regular functioning of supply chain finance. Digitization can help in managing these risks, facilitating the control of the factors underlying them.https://www.aifirm.it/wp-content/uploads/2023/04/RMM-2023-01-Excerpt-1.pdfsupply chainsupply chain disruptionssupply chain financesupply chain riskdigital supply chain
spellingShingle Francesca Querci
Supply Chain Finance techniques and risks
Risk Management Magazine
supply chain
supply chain disruptions
supply chain finance
supply chain risk
digital supply chain
title Supply Chain Finance techniques and risks
title_full Supply Chain Finance techniques and risks
title_fullStr Supply Chain Finance techniques and risks
title_full_unstemmed Supply Chain Finance techniques and risks
title_short Supply Chain Finance techniques and risks
title_sort supply chain finance techniques and risks
topic supply chain
supply chain disruptions
supply chain finance
supply chain risk
digital supply chain
url https://www.aifirm.it/wp-content/uploads/2023/04/RMM-2023-01-Excerpt-1.pdf
work_keys_str_mv AT francescaquerci supplychainfinancetechniquesandrisks