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Published by Umer Raja
financial risk management topic.innovative learning adaptability.
financial risk management topic.innovative learning adaptability.

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Published by: Umer Raja on May 17, 2013
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IFM Roll no 16

Peter Kristofik1, Jenny Kok
ACRN Journal of Entrepreneurship Perspectives Vol. 1, Issue 2, p. 132-143, Nov. 2012 ISSN 2224-9729

FINANCIAL SUPPLY CHAIN MANAGEMENT –CHALLENGES AND OBSTACLES Abstract. Financial supply chain is all about the movement of money along the chain. To optimize these financial processes, Financial Supply Chain Management (FSCM) helps companies looking from a more external point of view to the whole chain. This holistic approach is focusing on collaboration with other parties within the chain. The paper is aimed at finding differences in Working Capital Management (WCM) between Small and Medium sized Enterprises within the Dutch and Slovakian construction industry. Furthermore, the focus of the research is on finding a way a Small and Medium sized Enterprise can improve its WCM. A Case Study research method is used, because a rich understanding of the Context of the research is gained. The primary data of this research is obtained via questionnaires whereas the secondary data is collected and gathered via databases. Research has shown that there are big differences in the way working capital is optimized between SMEs within the Dutch and Slovakian construction industry as well as opportunities for application of FSCM.

Conclusion Effective supply chain management requires a different approach to doing business than many companies have had in the past. In particular, collaboration and transfer of information between different departments managing each element of the supply chain is a key. A holistic approach to liquidity management may enhance process efficiency due to the use of electronic invoices and electronic payment. Finance divisions need to be more innovative in the ways they raise finance and manage liquidity. By implementing electronic data transfer, companies can increase their competitiveness, freeing up working capital and reducing risk. Companies which ensure that their internal processes are aligned with the new opportunities are likely to derive the greatest benefits. Since the financial crisis financial markets are failing with increasing number of distortions. Companies can use the financial crisis as an opportunity to rethink their business model. Both the Dutch and the Slovak construction industry may benefit by paying more attention towards their financial supply chain management. This requires also further development of research in the area of short term financial management and tools for a more accurate risk management.

the higher the Return on Assets (ROA) of the firm. Second. To achieve supply chain fit. To do so. they need to understand the characteristics and capabilities of their supply chain. firms must consider three basic steps (Chopra and Meindl. is significantly related to the financial performance of the firm. we investigate the relationship between supply chain fit (i.. the position along the efficiency–responsiveness continuum. Therefore. most firms have the potential to initiate the alignment of their supply chains with their products.e. through inventory reductions). The findings indicate that the higher the supply chain fit. Lee. 2010. a survey of 259 U. 2002): First. that is. 2010. and secondary financial data. and that firms with a negative misfit show a lower performance than firms with a positive misfit.IFM The Link between Supply Chain Fit and Financial Performance of the Firm Roll no 23 Stephan M. Fisher’s (1997) conceptual framework. Building on the operations strategy literature. they should also take into account that negative misfit is less desirable than positive misfit. that is.. With such a match. Third. Our study provides good arguments for supply chain and operations managers that supply chain management is not confined to operational issues (such as lead time Reduction.g. through postponement). supply chain fit. but that it has tangible. and efficiency for a supply chain facing low implied uncertainty.. Jan 2012 Abstract The bottom-line financial impact of supply chain management has been of continuing interest. .S. “[t]he goal is to target high responsiveness for a supply chain facing high implied uncertainty. capacity utilization etc. our study will help managers to underline the strategic relevance of supply chain management in the firm. bottom-line financial implications and therefore has a strategic role to play. strategic consistencies between the products’ supply and demand uncertainty and the underlying supply chain design) and the financial performance of the firm. p. the characteristics and capabilities of their supply chains. and European manufacturing firms. Wagner Journal of Operations Management. they need to understand demand and supply uncertainty of their products and associated customer needs. Second. Conclusion The purpose of this study was to investigate and quantify the impact of supply chain fit on the financial Performance of the firm. The resulting positive misfit will be related to higher ROA than a potential negative misfit.). Since only a small number of firms in our sample achieve a perfect fit between these two dimensions.g. and ensure that the degree of supply chain responsiveness is consistent with the products’ supply and demand uncertainty (Chopra and Meindl. 45) Corporate practice can benefit from the results of our research. firms need to understand the supply and demand characteristics of the products they offer. 2010). The product characteristics and supply chain designs summarized in Tables 1 and 2 can be a starting point for such an initiative. they need to ensure that the degree of supply chain responsiveness (supply chain design characteristics and capabilities) is consistent with the products ‘supply and demand uncertainty.(Chopra and Meindl. while unquestionable firms should strive to design their supply chains to ideally match their products’ supply and demand uncertainty. they should rather invest into measures to increase the efficiency of the supply chain (e. Instead of overinvesting into measures to increase the responsiveness of the supply chain (e. the match between the products’ supply and demand uncertainty and supply chain responsiveness. First.

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