VIETNAM NATIONAL UNIVERSITY - HOCHIMINH CITY

INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS


THE IMPACT OF SUPPLY CHAIN FINANCE ON VIETNAM CORPORATION
PERFORMANCE: IMPROVING SUPPLY CHAIN EFFICIENCY AND
INCREASING PROFITABILITY.

In Partial Fulfillment of the Requirements of the Degree of

MASTER OF BUSINESS ADMINISTRATION

In (Finance)
By
Ms: Th Hong Anh
ID: MBA06002

International University - Vietnam National University HCMC


August 2014





THE IMPACT OF SUPPLY CHAIN FINANCE ON VIETNAM CORPORATION
PERFORMANCE: IMPROVING SUPPLY CHAIN EFFICIENCY AND
INCREASING PROFITABILITY.

In Partial Fulfillment of the Requirements of the Degree of

MASTER OF BUSINESS ADMINISTRATION

In (Finance)
By
Ms: Th Hong Anh
ID: MBA06002
International University - Vietnam National University HCMC

August 2014
Under the guidance and approval of the committee, and approved by all its members, this
thesis has been accepted in partial fulfillment of the requirements for the degree.
Approved:

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Chairperson Committee member


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Committee member Committee member


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Committee member Committee member


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ACKNOWLEDGE






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Plagiarism Statements
I would like to declare that, apart from the acknowledged references, this thesis either
does not use language, ideas, or other original material from anyone; or has not been previously
submitted to any other educational and research programs or institutions. I fully understand that
any writings in this thesis contradicted to the above statement will automatically lead to the
rejection from the MBA program at the International University Vietnam National University
Hochiminh City.



















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Copyright Statement
This copy of the thesis has been supplied on condition that anyone who consults it is
understood to recognize that its copyright rests with its author and that no quotation from the
thesis and no information derived from it may be published without the authors prior consent.
Do Thi Hoang Anh/ MBA06002/2014







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TABLE OF CONTENTS
LIST OF TABLES............................................................................................... viii

LIST OF FIGURES............................................................................................. ix

ABSTRACT ......................................................................................................... x

CHAPTER I: INTRODUCTION........................................................................ 1

1.1 Backgrounds....................................................................................................... 5
1.2 Problem statement .............................................................................................. 7
1.2.1 A general framework of research .................................................................... 8
1.2.2 Research questions ........................................................................................ 10
1.3 Research methodology ......................................................................................... 13
1.3.1 The research process ..................................................................................... 13
1.3.2 Hypothesis .................................... .16
1.4 Delimitation ......................................................................................................... 17
1.5 Thesis outline ....................................................................................................... 18

CHAPTER II: LITERATURE REVIEW........................................................... 7

2.1 Theoretical review.................................................................................... 7

2.1.1 Working Capital .................................................................................. 7

2.1.1.1 Definition ....................................................................................... 7

2.1.1.2 Characteristics ............................................................................... 8

2.1.1.3 Working Capital Accounts .............................................................. 9

2.1.1.4 Measure of Working Capital........................................................... 9
iv

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2.1.1.5 Working Capital Requirement ........................................................ 12

2.1.1.6 Working Capital Management and its Components......................... 12

2.1.2 Profitability and Liquidity ................................................................... 14

2.1.2.1 Profitability .................................................................................... 14

2.1.2.2 Liquidity......................................................................................... 15

2.1.2.3 Relationship between Profitability and Liquidity ............................ 15

2.1.3 Relationship between Working Capital and Profitability .................... 15

2.2 Review of empirical studies ..................................................................... 16

2.2.1 Developing-nation group..................................................................... 16

2.2.2 Developed-nation group ...................................................................... 19

2.3 Conclusions............................................................................................... 21

2.4 Construction and Building material sector in Vietnam.......................... 21

CHAPTER III: RESEARCH DESIGN AND METHODOLOGY .................... 24

3.1 Theoretical Framework ........................................................................... 25

3.1.1 The variables ....................................................................................... 24

3.1.2 Models and Hypotheses ....................................................................... 27

3.2 Research Methodology............................................................................. 29

3.2.1 Research Design.................................................................................. 29

3.2.2 Sampling Design ................................................................................. 30
v

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3.2.2.1 Target population........................................................................... 30

3.2.2.2 Sample............................................................................................ 31

3.2.3 Data Collection.................................................................................... 31

3.2.4 Data Analysis ...................................................................................... 31

3.2.4.1 Descriptive Statistics ...................................................................... 31

3.2.4.2 Correlation Test ............................................................................. 31

3.2.4.3 Multiple Linear Regression Analysis............................................... 32

CHAPTER IV: DATA ANALYSIS AND DISCUSSIONS ................................ 33

4.1 Descriptive Statistics ................................................................................ 33

4.2 Correlation ............................................................................................... 34

4.3 Multiple Linear Regressions.................................................................... 36

4.3.1 Assumptions ........................................................................................ 36

4.3.1.1 Heterokedasticity............................................................................ 36

4.3.1.2 Cross-section weight ...................................................................... 36

4.3.1.3 Hausman Tests for correlated random effect................................... 36

4.3.1.4 Multicollinearity with Variance Inflation Factor (VIF) ................... 36

4.3.1.5 Autocorrelation .............................................................................. 37

4.3.2 Multiple Linear Regressions Results ...................................................... 37

4.3.2.1 Result of the hypothesis 1 .................................................................. 37
vi

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4.3.2.2 Result of the hypothesis 2 .................................................................. 40

4.3.2.3 Result of the hypothesis 3 .................................................................. 43

4.3.2.4 Result of the hypothesis 4 .................................................................. 45

4.3.3 Discussions of the results ....................................................................... 47

CHAPTER V: CONCLUSIONS AND RECOMMENDATIONS ..................... 51

5.1 Conclusions............................................................................................... 51

5.2 Recommendations .................................................................................... 52

5.3 Limitations and Suggestions for Further Research ................................ 53

LIST OF REFERENCES .................................................................................... 54

APPENDIX: RESULTS OF HAUSMAN TEST FOR CORRELATED RANDOM
EFFECT............................................................................................................... 58

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List of Tables
List of tables here


- iv -
List of Figures
List of figures here
























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LIST OF ACRONYMS & ABBREVIATIONS
SCF - Supply Chain Finance
FSCM - Financial Supply Chain Finance
EVA - Economic Value Added
BSC - Balance Scorecard
SCM - Supply Chain Management
KPI - Key Performance Indicators
LC - Letter of Credit
CCC - Cash Conversion Cycle
DIO - Days of Inventory Outstanding
DSO - Days of Sales Outstanding
DPO - Days of Payable Outstanding
AR - Account Receivable
AP - Account Payable
IV - Inventory Value
IT - Inventory Turnover
COGS - Cost of Goods Sold
CR - COGS as % of Revenue
SR - SG&A as % of Revenue
ROE - Return on Equity
ROA Return on Assets
ROS - Return on Sales
WACC - Weighted Average Cost of Capital



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ABSTRACT
This thesis provides an introduction to supply chain finance, studies the application of supply
chain finance (SCF) in the supply chain management, describes its impact on Truong Thanh
Furniture Corporation and Wooyang Vina II Co., ltd.

Supply chain finance (SCF) provides short-term credit that optimizes working capital for
both the buyer and the seller. It aims to lower financing costs, improve the financial
efficiency of the supply chain, and increase profitability. It allows buyers to extend payment
terms while providing suppliers access to better financing rates. It creates a true win-win for
all the parties involved as one of the most attractive tools for companies to diversify funding
sources, enrich and solidify the customer relationships.

The impact of SCF on corporate performance reflects in the improved supply chain efficiency
in terms of cost saving payable processes and payment term extension. The performance
indicators derived from the financial supply chain management (FSCM) have influences on
profitability. On the SCF program, decreased costs of goods sold (COGS) obviously can
increase return on invested capital (ROIC) and return on equity (ROE) in short term. The
cause-effect relationships between the FSCM performance indicators and profitability are
established by the EVA model and tested in linear regression analysis. (Dan Xu Brentsen
2012)

The supply chain finance is a financial tool that provides win-win solution for all the
participants. Particularly in the economic recession, the positive impact of SCF on company
performance can lead to the profitability, and lower financing costs.
Keywords: Supply chain finance , Cost optimization, Competitive advantage,
Liquidity, Working capital, Automated trade finance solutions

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CHAPTER 1
INTRODUCTION
As businesses face an ever-changing global environment, the increasing pressure of meeting
short term liquidity needs, maximizing cash generation, managing working capital, and
supporting the credit needs of the supplier base become more and more important in order to
lower financing costs, increase profitability and enhance shareholder value. Therefore,
Todays CFOs and treasurers are turning their attention to supply chain management and
procurement and taking a fresh look at how their physical supply chain is impacting their
companies cash flow and working capital management.

Currently there is little financial provision of supply chain activities to developing economies
in Africa, Eastern Europe and Asia, especially in Vietnam. Such financial inefficiencies are
increasingly becoming a risk to downstream firms. An approach that addresses these
challenges is Supply Chain Finance (SCF).


Supply chain finance programs are most prominently developed in the United States,
followed by Europe, particularly in the United Kingdom and Germany. Asia is gaining
momentum especially in India and Chinaand is expected to become the fastest growing
market in supply chain finance in the coming years. The industries in which supply chain
finance programs are most prevalent are retail, manufacturing, consumer products,
automotive, agriculture, chemicals, and pharmaceuticals. The three common attributes of
companies in those industries that make them good candidates for supply chain finance are
that (1) all of them are global, (2) all of them have extensive supply chains, and (3) all of
them have significant lead time from the time inventory gets ordered to the time a purchase
order gets approved.
Supply Chain
Since the 1990s, market competition is no longer between the individual enterprises, but is
competition between supply chains. Supply chain is a concept which refers to the process of
purchasing raw materials, manufacturing to selling to the customers. It includes energy
enterprises, manufacture enterprises, commercial enterprises and so on. It essence further
extended to the demand forecasting, materials management and production planning.
Wikipedia explains supply chain. A supply chain is a system of organizations, people,
technology, activities, information and resources involved in moving a product or service
from supplier to customer. Supply chain activities transform natural resources, raw materials
and components into a finished product that is delivered to the end customer.

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Figure 1 Source - GXS


Economic Value Added
Wikipedia explains EVA Economic Value Added or EVA, is an estimate of a firm's
economic profit being the value created in excess of the required return of the company's
investors (being shareholders and debt holders). Quite simply, EVA is the profit earned by
the firm less the cost of financing the firm's capital. The idea is that value is created when the
return on the firm's economic capital employed is greater than the cost of that capital.
Supply Chain Finance
Supply chain finance may be defined as a finance tool as a link between the buyer and seller
aided by the credibility of the buyer to have liquidity in the system. Supply Chain Finance
(SCF) is generating much enthusiasm amongst banks and their corporate customers as a
means of substituting for lower credit availability. SCF structures not only allow large
corporations to extend their credit terms with suppliers, but also to use the credit quality of

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their payables to allow their banking partner to finance their suppliers outstanding
invoices at a favourable rate.


Figure 2 Source - GXS



As of exaggerated globalization companies are more diversified in their operations which led
to complex supply chain networks. Dynamic discounting, early discount payment and
lengthening payment terms are crucial for corporates to deal with insolvencies and remain
competitive at the same time.
Supply chain finance program has gained attentions since the financial crisis. The SCF
program aligns the third party financial services, large and small participants through the
open account.
Lambert and Pohlen (2001) use the EVA model to integrate the supply chain operational
processes to financial performance.

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Gomm (2010) embraces the key performance indicators for both supply chains and financial
flows in to a single corporate performance evaluation based on the EVA model. The EVA
model works also on capturing how the companies drive value and profitability including the
cost of capital in the supply chain.
Wang (2010) has conducted an empirical analysis to test the impact of the SCF program on
corporate performance before financial crisis. The improvements of operational and financial
indicators can be observed in short term.
Kerle (2010) has further provided the evidences of maximizing the current scarcity of
liquidity by applying the SCF program.
IMDs survey (2009) shows over half of respondents have admitted the implementation
of SCF to SCM can help improve supplier relations.
The Letter of credit and bank guarantee helped international business partners manage cash
flows. However, the impact of financial crisis amplified counterparty risks and
increasestransaction costs. Problems of aging payables and increasing credit risks have
become the main reasons to cause inefficiency in operational and financial performances.
Hendricks and Singhal (2005) show that companies suffering decreases in 33-40%lower
stock returns relative to their industry benchmarks because of supply chain glitches caused by
suppliers.
Avanzo et al.(2003) show the impact of supply chain performance on financial indicators.
Kerle (2010) show that the risks in the supply chain management associated with
volatility and supplier failure had increased 54% between mid-2007 and mid-2008.
Snell 2010 show that 90% of films felt threatened by supply-side risks.
Demica report (2011) studies the growth trend of a financial solution on supply-sidetrade
relations.

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Obviously decentralized supply chain inevitably leads to decentralization of financial
management and economic resources, so it is difficult to integrate various resources from
supply chain. To increase the efficiency of the supply chain optimization of economic
resources is very important. Financial instruments like SCF are new tools to integrate this
aspect. When goods are moving into supply chain, cash flows are in motion simultaneously
because flows of logistics and cash flows are inseparable. There is inalienable relationship
between finance and logistics.so we can conclude the competition between the supply chain
efficiency is now changed into how to use finance instruments in supply chains. Thus
analysing the relationship between supply chains and cash flows has become a crucial
question.

Working Capital Aspect-
Wikipedia defines Working capital (abbreviated WC) is a financial metric which
represents operating liquidity available to a business, organization or other entity, including
governmental entity. Along with fixed assets such as plant and equipment, working capital is
considered a part of operating capital. Net working capital is calculated as current assets
minus current liabilities
Working capital is amount of owners capital into business. More or less working capital
from a optimum level is harmful to the company. An optimum level is required.
Working capital is one of the most important indicators of efficiency in a supply chain (Farris
and Hutchison 2003). It is defined as current assets less current liabilities. Current in this
context usually refers to a time horizon of a year or less (Emery and Finnerty 1997).

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Source- http://www.springer.com/978-3-642-17565-7
Traditional methods for improving working capital
Enforced DPO extension: Strong buyers enforce their dominating position to delay the
payments to small suppliers.
Just-in-time and other inventory reduction techniques:
Enforced DSO reduction: strong suppliers use bargaining power to force smaller, less
powerful buyers to pay early.
Currently, as the impact of the global credit crunch has the knock-on effect of tightening
credit criteria for corporate lending, financial directors need to look for alternative means of
raising their working capital.
Companies are more focused now to unhide their hidden potential in working capital.
According to various studies, there is at least USD 400 billion trapped in the working capital
cycle of corporates. Supply chain finance is highly appreciated tool to unhide potential by
reducing the working capital to an optimum level, which otherwise leading to credit crunch in

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the system. Supply chain finance leverages the credit rating of the buyer with the electronic
platform of the bank to finance the seller by right amount at right time.
At present, SCF is getting popular in banks and companies. Large numbers of companies are
now applying this concept of supply chain finance. However, in practice, many issues arising
in operation have not been given enough attention by researchers, functional departments and
the management. Financial risks arising from supply chain has received little attention and
rarely researched.
However, this is the key to the development of supply chain finance and to sustainable and
healthy development in global market.
LITERATURE REVIEW
In 2008 economic crisis laid more emphasis on the concept of SCF in financing the supply
chain operations. The strategic link between supply chain and financial flows is considered an
inevitable solution while improving performance of the company.
Development of supply chain
Supply chain term was first introduced by U.S industry consultants in early 1980s (Oliver
1982). The expansion of physical capabilities in international logistics has started since the
early 1990s, and the trend of global economic integration becomes evident everywhere. With
the development of robust information technology for communication and trade integration
worldwide buyers and suppliers become quicker in trade terms.
Globalization brought more challenges to supply chain as of complex trade mechanism. This
also leads to a broad inclusive view of logistics, which is not only responsible for one to one
business, but a network of multiple businesses and relationships.
The links of business processes have direct effects on the levels of decision making, such as
operations and financial planning, supplier risk and customer services management.

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Thus, analyzing and designing an efficient and effective supply chain have gained an
increasing attention, and models of evaluating supply chain performance
Farris and Hutchison (2002) have emphasized the cash-to-cash cycle concept to the supply
chain management perspectives. It contains three important leverages which are account
payables, account receivables and inventory. In the meanwhile, the idea of cash management
has also been sentient in supply chain business processes.
Badell (2005) addresses that the financial flow optimization in operation processes will
satisfy shareholders as well as improve supply chain efficiencies.
The cash inflows and cash outflows in supply chains are strongly dictated to the capital
capacities in companies. The synchronized level between supply chain management and the
financial flows can be seen as indicator to measure the operational efficiency and as a result
the financial liquidity in the companies.
Financial performance in connection to supply chain activities are always seen as cost
reduction, market share growth and profit increase (Chien 2007).
There are positive relations between financial factors and the innovative supply chain
practices.
The improved supply chain business processes can benefit company by Better financial
performance; the increased corporation profit and market position are accompanied by an
increase of the overall corporate performance.

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Figure 3
Above figure shows the concept of supply chain finance.
From the buyers point of view (blue dotted line) lengthening the days in payables is
rational to shorten the cash conversion cycle.
From the suppliers point of view (red dotted line) shortening the days in account
receivables can help the company lower the cash conversion cycle. The shorter the cash
conversion cycle, the healthier a company generally is, because less time capital is tied up
into business processes.
The improved operating cycle will leads to the profitability of both the companies in the
business. The improved efficiency will generate more cash flows ( increases the liquidity ) in
the system. Also it results in better rating of both of the organizations.
Supply Chain Finance
Supply chain finance (SCF) is an approach that aims to improve the supply chain efficiency.
It is intended to improve payment terms, to reduce costs and to accelerate cash flows.
Overall, thewell-gained credit rating to the small/weak participants from the strong/large

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participants (Myers 2002) and the simplicity of payable processes (Hartley-Urquhart 2000)
will enhance thesupplier-buyer partnerships.
Vietnamese Scenario-
Some Vietnamese origin banks are providing supply chain finance e.g Standard Charterd
Bank, ANZ, BIDV, HSBC
Standard Charted Bank is leading in this context.
We take the example of Standard Charted Bank to explain the key concept behind this tool.

Standard Charted Bank introduces Supply Chain Finance by leveraging its state of the art
technology for the convenience of the customers. SCF will strengthen the relationship of
Standard Charted Bank with the Corporate World by financing their supply chain partners.

Two types of Supply Chain Financing (SCF)
1. Supplier Finance Programmes (SFP): Financing for Suppliers recommended by Anchor
and suppliers can choose to be paid upfront by the Bank while the corporate fulfils its
payment obligation on the due dates
2. Buyer Finance Programmes (BFP): Financing for Buyers/Distributors recommended by
Anchor and SCB can pay the Anchor on behalf of its buyers/dealers and is repaid on due
date by the dealers/buyers

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Figure 4
Source-
www.sbionline.com



RESEARCH DESIGN
RESEARCH QUESTIONS
The introduction of SCF to the corporate world will help them to conquer financial
constraints and develop cash flow effectively. A general framework of research is designed
containing the financial issues in supply-side value chain and the application of a financial
solution for improvement. The subsequent research questions are designed to explore and
analyze the possibilities.

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Two main research problems are expected to be answered:
Does the use of SCF have positive effect on the performance of a company?
How SCF can improve profitability as well as control supply-side risks of a company?
Several sub-questions are required to be studied regarding the main research problems:
1)What is the SCF, and how to integrate SCF into SCM?
2)What are the performance and financial indicators SCF?
3)Could SCF have impact on short-term company finance?
4)What is the practical application of the SCF in the supply-side value chain?
6)How could large participants use the SCF with small participants in business?
7)What are the expected outcomes by the application of the SCF?
8)What are the most significant benefits and achievements for business partners traded via
SCF?

RESEARCH OBJECTIVE
The objective of the research is to analysis the key contributors of supply chain program
which enhance the performance of the company.
It further include various analysis tools to get concrete analysis of what needed the most for
SCF to be part of supply chain in future.

FRAMEWORK OF RESEARCH

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In the house of supply chain management in figure 1, there are two business partners under
the roof, one is the supplier and the other is the buyer. The buyer is considered stronger
having good credit rating in comparison to the seller. The impact of financial crisis destroyed
mutual trust between the system and lead to credit crunch in the system. Therefore, the lack
of efficiency in supply chains causes the difficulties in the flows of financial resources
between organizations.
In order to increase liquidity, the supplier promotes terms on early discount payment with
cost of money and the buyer applies dynamic discounting method with upfront cash reserves.
This phenomenon works well until there is no credit crunch, but in case of financial crisis
buyer starts lengthening the credit period to fulfil internal financing activities in the company
which leads to difficulty to the supplier. Now supplier has to go for bank to have credit at
higher interest rates which lowers the profitability of the supplier. In the meanwhile it is not
rational anymore for the supplier to offer early discount payment, because the lower credit
ratings may lead to bankruptcy at the end.
The consequence of supplier failures in the supply chain is expensive; hereby the resolution
to help the buyer and the supplier live on from the transitory overwhelming turmoil is a
further contribution of this study. The introduction of the SCF program in the supplier-
buyer trade relations breaks the door to the next level of supply chain management
financial supply chain management (FSCM).

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Figure 5 - Financial issues on supplier-buyer relationships in supply chain management and
benefits of applying the SCF program
Source - The Impact of Supply Chain Finance on Corporate Performance by Dan Xu
Barentsen


The application of the SCF program brings a new financial solution to supply chain
management, considering the third party financial services. The reverse factoring allows the

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buyer to help the supplier receive better terms of capital financing through the IT platform
provided by the financial provider. The SCF program is a superior solution for the supply-
side value chain management.
Both the buyer and the supplier can benefit on the SCF program. Most importantly, the buyer
can pursue a tactic strategy to lengthen payment terms without extracting extra costs from the
supplier as well as improving the economic value added (EVA). As for the supplier, lower
cost of financing and speed-up cash flows are the most significant achievements. Supplier
risks are mitigated as the supplier strengthens its cash flow and as a result it has a better
liquidity which is especially helpful in the financial crisis; eventually the supplier can
improve its credit rating and become stronger in the marketplace.
The SCF program has the insight of becoming popular concerning the positive outcomes
from the perspectives of both the buyer and the suppler. The financial crisis is seen as a
significant driver of interest in SCF, because corporates as well as their financial institutions
are seeking to free up cash flow in supply chains while reducing risks. Undoubtedly, the SCF
program has the competence to develop the flows of financial resources in supply chain
management
Finance Supply Chain Management (FSCM) Performance Indicators
KPI are known as key success indicators. There are various KPIs that are used for the
measurement of financial supply chain management. FSCM performance indicators will be
defined from both supply chain operations and financial flows
COGS Cost of goods sold
It is the cost of the goods incurred by the company during manufacturing.
CCC - Cash conversion cycle-
May be defined as the time between the cash given to supplier in return of the raw materials
procured and cash received from the customers against goods sold.

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Profitability Ratios
ROI (Return on invested capital)
I t is the return on the capital employed by the owners
WACC (Weighted Average Cost of Capital)
Investopedia explains A calculation of a firm's cost of capital in which each category of
capital is proportionately weighted. All capital sources - common stock, preferred stock,
bonds and any other long-term debt - are included in a WACC calculation.
EVA =(ROI C- WACC) x I nvested Capital
thers are
Cooperation with Suppliers
The target for 2007 was to develop a step-by-step procedure for how and when to further
develop cooperation with suppliers on issues of sustainability. In line with this target, we
developed a new method in 2007 for responsible purchasing that considers the risks and
opportunities in our supply chain. Our target for 2008 is to carry out a pilot test of this new
responsible purchasing model in all regions with the aim of implementing it in 2009.
Novozymes annual report (2007)
RESEARCH METHODOLOGY

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Research questions are drafted regarding the impact of SCF on the company performance
bysupply-side value chain efficiency. A sophisticated research process is developed to
accomplish the research of interests.
The Research Process
The research methodology is designed in accordance to quantitative method only. Random
collected sample is used to test the hypotheses in the research work. The data are randomly
collected from various resources. The data analysis will be done by IBM SPSS Statistics
software.
Hypothesis, testing methods and research questions
Referred to the main research questions and sub-questions, the purpose of this study is about
to figure out the positive effects of using the SCF program on the corporate performance
Following are research questions that will be tested on the subject of quantitative research
method:
H1: The application of the SCF has a positive impact on short-term corporate performance.
H2: The FSCM performance indicators and profitability are correlated.
H3: There are cause-effect relationships between the FSCM performance indicators and the
profitability ratios.
H4: SCF increases the mutual relationship between buyer and seller.
H5: SCF hedges the insecurity of defaulting in trade transaction.
H6: SCF increases liquidity in the system.


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ATA ANALYSIS AND FINDINGS
We have 57 respondents for the six questions asked. Following is the table showing the
response:
h1 h2 h3 h4 h5 h6 h7
1 6 5 3 5 6 3 6
2 6 6 4 6 7 3 7
3 6 5 5 7 5 5 7
4 6 4 5 6 6 4 6
5 7 5 6 7 7 4 7
6 7 6 5 6 6 4 6
7 7 5 4 7 5 3 7
8 6 6 3 6 4 3 6
9 7 5 4 5 5 4 7
10 7 5 5 5 6 5 6
11 6 6 6 7 6 6 7
12 7 5 3 5 7 3 6
13 6 4 4 6 6 2 7
14 7 5 3 5 6 3 6
15 7 6 4 5 7 4 7
16 7 5 5 5 6 5 6
17 7 4 6 4 5 5 7
18 6 5 5 5 5 4 6
19 7 6 4 6 6 3 7
20 7 5 5 6 7 4 6
21 6 5 6 6 6 4 7
22 7 6 5 5 5 3 6
23 7 5 4 5 6 4 7
24 6 6 5 4 7 3 6
25 7 5 6 5 6 2 6
26 7 5 6 6 5 3 7
27 7 5 7 7 6 6 6
28 7 6 7 4 5 4 7
29 6 6 6 5 6 3 6
30 7 6 4 6 7 3 6
31 7 6 5 6 6 3 6
32 7 5 4 7 5 4 7
33 7 5 3 6 5 4 6
34 6 5 4 5 6 4 7
35 7 6 5 5 5 3 7
36 6 5 4 6 5 3 6
37 7 6 5 7 6 2 7
38 7 5 6 6 7 3 6
39 6 6 5 6 6 3 6
40 7 5 4 7 7 6 7

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41 7 6 3 6 6 4 6
42 7 5 5 7 6 5 7
43 7 6 5 4 6 4 7
44 7 5 6 5 5 3 7
45 7 6 5 6 6 4 6
46 7 5 5 5 6 4 6
47 7 6 4 6 7 3 6
48 6 5 5 7 6 3 6
49 6 6 4 6 5 4 6
50 6 5 5 6 6 5 6
51 7 6 6 7 5 4 6
52 7 5 5 6 4 3 7
53 6 4 4 7 5 4 7
54 6 4 3 6 6 3 7
55 6 5 4 5 7 2 7
56 7 5 5 6 6 3 6
57 6 5 6 5 5 3 6


CONCLUSION
First Highest Response H1
It can be stated form the above results of the survey that
H1: The application of the SCF has a positive impact on short-term corporate performance
Have topmost essence in the profitability of the organization.
Next highest response H7:
The popularity of applying the SCF is increasing
Is also holds true because the 2008 sub-prime financial crisis made trade untrustworthy and
SCF proved a viable option in that aspect. SCF is thus catching more and more attention day
by day.
Afterwards H4 & H5
Both H4: SCF increases the mutual relationship between buyer and seller and,
H5: SCF hedges the insecurity of defaulting in trade transaction is held at same position SCF
is new in concept and mutual relationships developed are not recognized as such. Also,
hedging is not justified as bank is solely trading of the behave of the credit rating of the
buyer.

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Next H2 & H 3
Both H2: The FSCM performance indicators and profitability are correlated and,
H3: There are cause-effect relationships between the FSCM performance indicators and the
profitability ratios are at par as supply chain though crucial but play a small part of the
company working so cant be heavily weighted with the profitability of the company.
Last H6
H6: SCF increases liquidity in the system is justified by the fact that SCF though facilitates
the quick movement of the money but is confined to very less business processes.


















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Appendix
Appendix here