Abstract:
SCF is typically a combination of services and technology solutions that links buyers, suppliers, and finance
providers to improve the visibility, financing cost, availability, and delivery of cash when supply chain
events take place. Companies and their banks are working together to develop finance solutions
encompassing the entire supply chain. SCF gives trade banks the tools they need to align their offerings with
their customers' evolving supply chain needs. This paper provides background on the growing importance of
SCF, delving into the key elements and available options from which these solutions are crafted and
implemented. While the market for SCF is still in the early stages of development, innovative banks already
have made heavy investments in it and others will be quick to follow. Those who seize this opportunity will
transform their businesses into ones that align with, and plug into, their customers' quickly evolving supply
chain strategies. It also explores current models and practice regarding the dynamics of financial flows
along global supply networks. Based on data collected from two main SCF provider banks of India, the
paper identifies and discusses requirements for improved solutions to supply chain finance challenges. This
research is particularly relevant in the light of the disruptions that the global credit crunch has brought to
financial systems, and the changes that are likely as responses to these disruptions.