A Study On Financial Supply Chain Management

The old management modes and business procedures can no longer meet the needs of the development in this Internet Age. The superiority of enterprises in competition largely depends on the integral capability of the whole supply chain. Supply Chain Management involves the substance flow, the information flow and the funds flow. Now the research about the substance flow and the information flow has been mature relatively, but to the funds flow is little. The processes that comprise a company's financial supply chain (credit facilitation, trade execution, invoice management, payment, and cash management and analytics) are fragmented and inefficient. The idea of an integrated and automated financial supply chain, which can extract working capital out of the supply chain and reduce the costs of finance and improve the financial aspects of your customer relationships, is intriguing to corporate managers who are used to focus on specific finance functions. This paper aims at the research about Financial Supply Chain Management (FSCM).The contents of this paper include: Chapter 1 introduces the paper's realistic foundation, theoretical reasons and main contents. Chapter 2 introduces the origins and the basic concepts and contents of Financial Supply Chain Management, as well as the innovations of FSCM. Chapter 3 analyses FSCM implement practices. This paper focuses on four components of SAP FSCM suite of solutions,which are SAP Credit Management, SAP Biller Direct, SAP Dispute Management and SAP collection management. Chapter 4 further discusses a strategic framework to quantify the potential benefits in each segment of the financial supply chain, and points out several principles, which should be followed by companies that want to imply FSCM. Chapter 5 gives the conclusion and proposes certain suggestions on implying FSCM in China.The innovations are illustrated in two aspects. On the one hand, this paper reviews and concludes the available researches of financial supply chain management in a systematic and full-scales way, and tries to provide a comprehensive framework about financial supply chain management, which could be a source for other researchers in this area. On the other hand, this paper researches deeply on SAP Financial Supply Chain Management, trying to provide a practical guidance in FSCM implement.