Maximising the Value of Supply Chain Finance

K. Vliet van der, M.J. Reindorp, J.C. Fransoo

Research output: Working paperOther research output


Supply Chain Finance (SCF) arrangements aim to add value by taking a cooperative approach to financing the supply chain. Interest in SCF has been increasing, and decision makers need a comprehensive view of possible applications and their potential. By means of theoretical and empirical exploration, we develop a conceptual framework that allows for positioning of SCF concepts and practices. The framework is based on a delineation of four archetypal SCF policies and the criteria that are relevant for adoption of each policy. The two main contributions of our framework are: (1) it explicitly considers operational motives as well as the financial motives that could prompt a firm to engage financial cooperation; and (2) it uses a discounted cash flow approach to illustrate the trade-offs that arise from different risks in SCF implementations. We use the framework to review policies that have been used in reverse factoring, an SCF practice that has recently become popular. Our study reveals implications for all the parties involved in an SCF implementation.
Original languageEnglish
Place of PublicationEindhoven
PublisherTechnische Universiteit Eindhoven
Number of pages35
Publication statusPublished - 2013
Externally publishedYes

Publication series

NameBETA Working Paper Series


Dive into the research topics of 'Maximising the Value of Supply Chain Finance'. Together they form a unique fingerprint.

Cite this