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The Role of Finance in Supply Chain Management

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Cost Management in Supply Chains

Summary

Traditional supply chain management focuses on both materials and information flow. However, considerable cost reductions can also be achieved through optimally designed financial flows within the chain. Savings due to minimized stock levels may easily be offset by the costs to finance the remaining inventory. Inventory carrying costs do not only comprise of financing costs but also of costs associated with taking credit risks upon sale and taking out insurance. Therefore, it is the scope of supply chain management to integrate three flows: product, information and financial. Integrating financial services into supply chain management will not create a new (financial) product. It is however about realizing unused opportunities for cost reductions.

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© 2002 Springer-Verlag Berlin Heidelberg

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Stemmler, L. (2002). The Role of Finance in Supply Chain Management. In: Seuring, S., Goldbach, M. (eds) Cost Management in Supply Chains. Physica, Heidelberg. https://doi.org/10.1007/978-3-662-11377-6_10

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  • DOI: https://doi.org/10.1007/978-3-662-11377-6_10

  • Publisher Name: Physica, Heidelberg

  • Print ISBN: 978-3-7908-2515-2

  • Online ISBN: 978-3-662-11377-6

  • eBook Packages: Springer Book Archive

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