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Supply Chain Finance preferred definition

21 August 2012 2 comments

Enrico Camerinelli

Supply Chain Blockchain Personal Coach

Aite Group

This very short blog post is to share with you the definition for SCF that I have come up with after a considerable amount of research on the subject:

Supply Chain Finance is the use of financial instruments, practices and technologies to optimise the working capital tied up in supply chain processes and to improve liquidity management for collaborating business partners

Opinions and comments are welcome (especially if you disagree)

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Financial Supply Chain

In the world of international trade, the process of exchanging payments, information and documents between buyers, sellers, banks, and other involved parties is becoming increasingly important for financial institutions. This community aims at presenting views and innovative ideas related to this financial supply chain space.

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Comments: (3)

A Finextra member

23 August 2012

A very good definition.

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Nahum Goldmann Partner at BelPay.be

23 August 2012

Enrico, I generally like it and will use it in our article but would change it from the old reactive "banking paradigm" to the new proactive "corporate paradigm" definition -- by substituting just one word.

It is not optimise but monetize! I don't think the banks would even know how to optimize it, as it should absolutely include optimization of the Global Value Chain as well; you can't optimize just the capital/payment component -- or the goods would never come on time. One more reason that SCF should be driven by the corporates.

A sea of difference.

Regards

Nahum Goldmann

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Enrico Camerinelli Supply Chain Blockchain Personal Coach at Aite Group

Author 23 August 2012

Nahum, you make a good comment. I believe you will find of interest this article http://treasurytoday.com/2012/08/smes-shun-banks-and-embrace-alternative-lenders

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Enrico Camerinelli

Supply Chain Blockchain Personal Coach

Aite Group

Member since

26 May 2008

Location

Boston

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