Supply Chain Financing study overview, CAPS Research

About this Video

• Video Title: Supply Chain Financing study overview, CAPS Research
• Channel: CAPS Research
• Speakers: Thomas Choi, Dale Rogers
• Duration: 00:04:59

Introduction

This video presents an overview of a CAPS Research study on supply chain financing. The study, led by Professor Dale Rogers, examines the movement of money within supply chains, collecting data from Fortune 500 companies, FinTech firms, non-traditional lenders, and major banks. The video aims to explain supply chain financing, its motivations, potential benefits for companies implementing it, and key findings from the research.

Key Takeaways

• Supply chain financing is defined as using the supply chain to fund an organization, or vice versa. It involves leveraging the supply chain as a source of capital.
• Motivations for the study included the lack of research on financial flows within supply chains, despite their significant influence on other supply chain aspects. The study aimed to understand these flows and how companies utilize their supply chains for financial purposes.
• Potential gains from implementing supply chain financing include alternative funding for organizational growth, especially in markets beyond traditional areas like North America or Europe.
• Key findings indicate that the cheapest capital may be found within the supply chain, offering a more cost-effective alternative to debt or equity capital. The study also highlights the importance of efficient supply chain management in funding company growth and improving profitability.