Examining Dimensions and Components and Application of Supply Chain Financing (In Chain Stores)

Abstract

Purpose: Supply Chain Finance (SCF) is a new approach in financing the working capital of economic enterprises, which can ultimately lead to economic growth and financial stability through efficient and smooth allocation of financial resources, improving financial risk management and increasing financial inclusion. Supply chain financing which runs parallel to the flow of goods and information, is common to all financing networks, and therefore it is important to understand its dimensions. The financing chain provides the cash flow needed to ensure the doors are kept open, the lights are on, employees are paid, and products are produced and shipped. Methodology: To achieve this goal, SCF uses principles that have been effective in supply chain management (SCM) for decades. The core of this financing chain is to create an optimization plan that can simultaneously control all supply chain financial processes. Findings: According to these cases, in this paper, considering the importance of managing the financial flow along the chain and using the principles and basics of research in the method of fact-finding and case study, an effort was made by examining the characteristics, dimensions and components of financing in the supply chain. As well as practical experiences in this field, a conceptual framework for the effective use of the financial flow management system as well as its principles and foundations should be provided. Originality/Value: In this paper, we will examine dimensions and components and application of supply chain financing (in chain stores).