Showing posts sorted by relevance for query SCF - Supply Chain Finance. Sort by date Show all posts
Showing posts sorted by relevance for query SCF - Supply Chain Finance. Sort by date Show all posts

Sunday, August 10, 2014

SCF - Supply Chain Finance

Graphic showing how supply chain finance works


How Supply Chain Finance works

Supply chain financing (or reverse factoring) is a form of financial transaction wherein a third party facilitates an exchange by financing the supplier on the customer's behalf.

Unlike traditional factoring (where a supplier wants to finance its receivables), supply chain financing is initiated by the ordering party (the customer) in order to help its suppliers to finance its receivables more easily and at a lower interest rate than what would normally be offered. In 2011, the reverse factoring market was still very small, accounting for less than 3% of the factoring market.
The current, global market size for Supply Chain Finance is estimated at US$275 billion of annual traded volume, which translates in approximately $46 billion in outstandings with an average of 60 days payment terms. It is still relatively small compared to the market size of other invoice finance methods such as factoring, which remains the largest trade finance segment and is primarily domestic in focus. 

The potential market for Supply Chain Finance for the OECD (Organization for Economic Co-operation and Development) countries is significant and is estimated at $1.3 trillion in annual traded volume. The market serving European supply chains is approximately $600 billion. Based on these figures, the potential Supply Chain Finance market size for the US is estimated to be approximately $600 billion in traded volume per annum. A recent comprehensive research paper estimated that currently there are 200 GSCF programs of scale in place. These programs are run both domestically and cross-border and in multiple currencies. Still, the market potential is far from its capacity. If examining spending of large organizations, such as Lowe's $33 billion in spend, it becomes apparent that Supply Chain Finance programs usually require a multi-bank platform due to the credit and capital issues associated with banks.

SCF essentially works by finding a bank to pay a customer’s invoice from its suppliers early [in essence, a loan], for a fee, so that suppliers can improve their cashflow. [see graphic] 

Any business concerned about its cashflow has to look at three important measures. How long does it take to get money in from customers; how quickly are suppliers paid; and what level of stock needs to be held.

Increasing the time taken to pay suppliers would have been an easy and immediate way of increasing cash availability. But the proposed shift from settling invoices in 30 days to making it 90 days would have really annoyed suppliers.

A solution was found through discussions with the company’s bankers that helped develop what was initially called reverse factoring. As it became more widely adopted, it became known as SCF.

Saturday, August 31, 2019

●● 21st Logistics, Strategy, Tactics

2024 

2023

2022
Failed Logistics = Vlad ➾ Ukraine 2022 ..

Agricultural Productivity 

Circular Economy 

Air 

Communications
SCN - Skeleton Cable Network ..

Cyber Crime/Warfare
NK Hackers ..
Spies, Lies, and Algorithms (2022) .. 

Desperate Measures
Xina's Bullying Diplomacy 

Economic Theory 

Energy 

Geostrategic Projection
European Geostrategic Projection ..
Warlord Geocorruption ..

Ideological Warfare




Surveillance, Intelligence

Survival, Emergency Preparedness 

Terrorism
NATO versus Terrorism ..

●● -20th+ Logistics, Strategy, Tactics

●● 21st Logistics, Strategy, Tactics ..

Axis logistical weakness


The German Navy had no aircraft carriers, which made air supremacy during naval battles impossible. (In total, the Axis fielded only sixteen carriers; the Allies, a hundred and fifty-five.)

Lindbergh and many others were “hypnotized by Nazi braggadocio and pageantry.” The Nazis were apparently hypnotized, too. As a land-based power with a small navy, they needed the Luftwaffe to perform miracles (for instance, bombing Britain into submission). They did not see the Luftwaffe realistically; they deluded themselves into believing it could do the impossible.

Acoustic Locators & Sound Mirrors ..
40-8-13 Adlertag & Unternehmen Adlerangriff ..         
Air tactics: Boelcke, Mannock, Malan ..
Analog & Digital Computing  
Anechoic Tiles 
Hawk versus Dove ..
MILDEC - Military deception ..
SCM - Supply Chokepoints - Maritime ..
Shadow Women & WW2 Propaganda ..
Starlink .. 

AI, Cyber



China, CCP, 21st
Xi-Stan Indoctrination ..



Construction  

Cyber Crime/Warfare

Desperate Measures

Drones 

Economic Warfare
Threat Level - Russia ⇨ Ukraine ..


Ideological Warfare


Intelligence, Cryptanalysis

Internet

IT, AI, Cyber Industry - 21st

Logistics, Modeling, Strategy
British Army's Newest Concept (2019) ..
Mahan & Naval Strategy ..  


Marine 


Mutually Assured Destruction


Naval

Nuclear Deterrence

Political Theory

Project Management

Resistance

Resources, Supplies

Social Media Propaganda Campaigns


Special Operations


Trade, Transport, Travel

Urban Combat 

USSR


Warfare

Weaponry


21st


sī vīs pācem, parā bellum

igitur quī dēsīderat pācem praeparet bellum    therefore, he who desires peace, let him prepare for war sī vīs pācem, parā bellum if you wan...