Aim of Supply
chain Management (SCM) is to provide transmission of goods and information with
highest degree of customer satisfaction at the lowest possible cost. A supply
chain is the network of the things involved in delivering finished goods to the
customer (Lindeke RR (2014) Supply chain management). The definition of the
Supply Chain Management (SCM) “in the process of planning, organizing,
implementing and controlling of the four things (material, capital, information
and manpower) from the point of production (supplier) to the point of Sale
(customer), forward & reverse, effectively & efficiently in order to
satisfy customer needs. “Supply chain Management as the integration of business
process from the end user through original supplier who provides products,
services and information that adds value for the customers” according to
(Douglas M Lambert). It can reduce the risk of seller at the time of sale.
Supply chain finance allows a supplier to sell its invoices to a bank at a discount
as soon as they approved by the buyer. The purpose of FSC is to obtain
visibility over the purchase to-order and order-to-cash processes (Kristofik
& Hoff, 2012).Globalization
is driving banks to examine new ways to cater to corporate clients, including
financial supply chain management (FSCM). Financial Supply Chain
Management is generally defined as a set of business and financial processes
that link the various parties involved in a supply chain – i.e. the buyer, the
seller and the financing institution -with a view to reducing financing costs
and ultimately achieve improved
business efficiency (Vousinas & Ponis,
“The goal of financial supply chain management is 1to obtain visibility over
processes, such as purchase-to-pay and order-to-cash cycles, as well as
processes involved in ordering, invoicing, reconciliation and payment” (Kristofik
& Hoff, 2012). “Growth of the bank stands on the relationship between Supply Chain Management (SCM) practices, and Organizational performance
and it is also found that
information and communication technology (ICT) had a major role in determining
the performance of bank. The study recommends that to use correct ICT methods
should be applied to promote the competitiveness of banks and improve performance”
(Kimechwa et al., 2015).


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