Financing Trade And International Supply Chains

The vast majority of international trade is supported by some form of trade financing: a specialized, sometimes complex form of financing that is poorly understood even by bankers and seasoned finance and treasury experts. Financing Trade and International Supply Chains takes the mystery out of trade and supply chain finance, providing a practical, straightforward overview of a discipline that is fundamental to the successful conduct of trade: trade that contributes to the creation of economic value, poverty reduction and international development, while increasing prosperity across the globe. The book suggests that every trade or supply chain finance solution, no matter how elaborate, addresses some combination of four elements: facilitation of secure and timely payment, effective mitigation of risk, provision of financing and liquidity, and facilitation of transactional and financial information flow. The book includes observations on the effective use of traditional mechanisms such as Documentary Letters of Credit, as well as an overview of emerging supply chain finance solutions and programs, critical to the financing of strategic suppliers and other members of complex supply chain ecosystems. The important role of export credit agencies and international financial institutions is explored, and innovations such as the Bank Payment Obligation are addressed in detail. Financing Trade and International Supply Chains is a valuable resource for practitioners, business executives, entrepreneurs and others involved in international commerce and trade. This book balances concept with practical insight, and can help protect the financial interests of companies pursuing opportunity in international markets.

This textbook presents a coherent and robust structure for integrated risk management in the context of operations and finance. It explains how the operations-finance interface jointly optimizes material and financial flows under intricate risk exposures. The book covers financial flexibility, operational hedging, enterprise risk management (ERM), supply chain risk management (SCRM), integrated risk management (IRM), supply chain finance (SCF), and financial management of supply chain strategies. Both qualitative and quantitative approaches – including conceptualization, theory building, analytical modeling, and empirical research – are used to assess the value creation by integrating operations and finance. “This book provides a comprehensive description of the interactions between finance and operations and of how managers can best make decisions in recognition of these effects.” John R. Birge, University of Chicago“Supply chain finance is an emerging area where innovations can unlock great values to complement the advances in information and physical flows of supply chain.” Hau L. Lee, Stanford University“This book provides an excellent overview of supply chain finance and its most recent advances.” Jan A. Van Mieghem, Northwestern University“This book is indispensable for advanced students as well as practitioners when looking for a pedagogical sound and scientific rigorous approach to Supply Chain Finance.” Ralf W. Seifert, IMD/EPFL“The book advances our knowledge on the interface between operations and finance and provides managerial guidelines for effective risk management in the supply chain.” Xiande Zhao, CEIBS

Supply Chain Finance is a contributed book looking at the two major perspectives of managing finance across the supply chain. The first is more short-term, focused on accounts payables and receivables. The second is a more overarching perspective, focused on working capital optimization in terms of inventory and asset management. It includes chapters from a variety of research perspectives, as well as from business and policymakers. The authors look at the benefits of the supply chain finance approach including reduction of working capital, access to more funding at lower costs, risk reduction, as well as an increase of trust, commitment, and profitability through the chain. Supply Chain Finance includes theory as well as practical case studies addressing advances in the area of supply chain finance. The editors and contributors look at how to design and implement supply chain finance in supply chains and examine what the future holds for this important area. Online supporting resources include self-test multiple-choice and essay questions for each chapter.

This book is a comprehensive introduction to supply chain financing as a business model that enables companies to reduce costs, improve their working capital and manage risks more tightly. Supply chain financing is using the supply chain to fund the organization and using the organization to fund the supply chain. Supply chain financing is of growing importance, the book explains what supply chain funding is and its different components as well as its impact and potential not only on companies using it, but more globally. The content moves from the basics of supply chain management to how to structure a global supply chain finance program in today's marketplace, the emergence of fintech providers, and alternative methods of payment, while also offering a view of the future that incorporates new platforms and analytical tools to optimize efficiencies in an organization and increase working capital flows.Supply Chain Financing is based on the authors' research and teaching at two leading US business schools. This book is useful for supply chain or finance professionals, decision makers in corporate disciplines, as well as students and professors in business fields.

Finance and Risk Management for International Logistics and the Supply Chain presents a detailed overview of financial and risk management tools, activity-based costing, and multi-criteria decision-making, providing comprehensive guidance for those researching and working in logistics and supply chain management. The book breaks new ground, combining the expertise of leading authorities to analyze and navigate the funding components for these critical transportation functions. As the international logistics and supply chain transportation fields have recently received heavy investments, this research and the theory behind it provide a timely update on risk management, finance and legal and environmental impacts. Users will find sections that address the wide-ranging issues related to this emerging field that are presented from an international and holistic perspective. Provides a valuable reference covering the full slate of financial issues of interest to global players in the international transport, logistics and supply chain industries Covers a truly international perspective, addressing a diverse variety of worldwide transport, logistics and supply chain contexts Features finance and risk-management strategies related to the banking industry, exchange rates, fuel prices, climate-related funding, freight derivatives and legal aspects

Trade finance is the backbone of international trade for entities ranging from a small businesses to multi-national corporations. An estimated 80 percent of world trade relies on this form of finance (WTO, 2017). Despite its systemic importance and rapid growth, data availability is only partial. During the 2008 financial crisis, policy makers, notably the G20 recognized that the absence of comprehensive trade finance data posed a significant hurdle for policy-makers to make informed, timely decisions. This paper proposes a stand-alone dataset to reflect the scope, dynamic and recent innovations of the trade finance market to support macroeconomic policy analysis.

Trade Finance provides a much-needed re-examination of the relevant legal principles and a study of the challenges posed to current legal structures by technological changes, financial innovation, and international regulation. Arising out of the papers presented at the symposium, Trade Finance for the 21st Century, this collection brings together the perspectives of scholars and practitioners from around the globe focusing on core themes, such as reform and the future role of the UCP, the impact of technology on letters of credit and other forms of trade finance, and the rise of alternative forms of financing. The book covers three key fields of trade finance, starting with the challenges to traditional trade financing by means of documentary credit. These include issues related to contractual enforceability, the use of "soft clauses", the doctrine of strict compliance, the fraud exception, the role of the correspondent bank, performance bonds, and conflict of laws problems. The second main area covered by the work is the technological issues and opportunities in trade finance, including electronic bills of exchange, blockchain, and electronically transferable records. The final part of the work considers alternative and complementary trade finance mechanisms such as open account trading, supply-chain financing, the bank payment obligation, and countertrade.

Globalization no longer means simply finding low-cost countries for sourcing, but has involved to include the opportunity for growth in Asia’s emerging domestic markets, specifically China. This development results in extended, truly global supply chains and thus places a higher pressure on working capital. Therefore, several definitions of Supply Chain Management already encompass financial aspects and demand a more integrated consideration of material, information, and financial flows within supply chains. However, more precise theory on “Supply Chain Financing” is understudied and initial implementation of related solutions in industry has only gained momentum during and after the economic and financial crises of 2008 and 2009. In contrast to traditional financial instruments for supply chains – for instance trade finance products which have been around for more than a century – Supply Chain Financing leverages larger and influential members of supply chains. These firms might, for instance, provide easier and cheaper access to financing for smaller supply chain members supporting their profitability through renegotiated and reduced purchasing prices. Echoing recent research results on supply chain risk management, other firms may prefer to take on a supply chain perspective and work on creating agile and resilient supply chains. In this context, Supply Chain Financing can be employed to ensure liquidity for crucial upstream and downstream supply chain partners thereby allowing a firm to effectively control risk while making the most of remaining growth opportunities in emerging markets like China!