Supply chain finance : improving the efficiency of the table grape industry : a case study

[摘要] ENGLISH ABSTRACT: 'Within the context of the current market conditions, SCF may be one of the most attractive tools forcompanies to diversify funding basis, enrich and solidify their relationships with suppliers and theircore banks. – Michiel Steeman (Executive Director – Supply Chain Finance Community). (ING Group,2013b).Insufficient cash flow is one of the major reasons for business failure in the current businessenvironment. The spotlight is on collaboration between supply chain management and finance torelease tied up cash in supply chains. Supply Chain Finance is a financial tool to help improve cashflow and optimise working capital to operate more efficiently. South Africa is one of the leading fruitexporters in the world with complex supply chains and even more complex financial arrangements.The need for Supply Chain Finance is aggravated by the long distances to overseas markets, and thusthe long delay in payments after goods have been shipped. Supply Chain Finance is beneficial to thesupplier, buyer and the financial service provider, creating a win-win-win situation. During thisresearch the table grape export supply chain of Denau Farming is investigated to develop anexplorative case study to implement Supply Chain Finance into their business model.During the research the problem of late payment received by buyers is explored by means ofinterviews and existing literature. A Concept Model is developed by adapting the Supply ChainOperations Reference Model (SCOR®) and the Management for Supply Chains (M4SC™) frameworkto identify the supply chain strategy during the current as-is physical and financial flow and toidentify the gap in the supply chain. Two Supply Chain Finance solutions are identified based onDenau Farming's financial needs in order to develop the to-be physical and financial supply chainsand the resource changes required to facilitate the respective implementation. The final resultdetermines how the proposed Supply Chain Finance solutions affect the expected cash-to-cash cycletime and the expected Economic Value Added (EVA®) in the case study.

[发布机构] Stellenbosch University