Supply Chain Finance: A Taxonomy

A new report from Aite Group provides an overview of the global supply chain finance (SCF) market in terms of what solutions are currently available, what players are involved, and what roles each party plays. Based on an online September/October 2010 Aite Group survey of 30 pre-selected panellists – corporate treasurers, finance managers, bankers, and solution providers – the report ultimately creates an organised classification of characteristics, roles, and products available in the global supply chain finance market today.

SCF is currently subject to multiple interpretations. Confusion around the true identity of SCF (and what products, services, and values fall under its umbrella) hinders corporate decision-makers seeking to understand the benefits achievable through a well-planned SCF programme. Financial institutions, solution vendors, and business services perceive the business opportunity available through SCF, but lack a clear and uniform vision regarding what it can do for their company. The uncertainty surrounding SCF underlines the need for a clear, holistic understanding for all involved.

“SCF is still perceived as a buyer-centric set of financial instruments – serviced through a technology platform – that ease the working capital of supply chain partners,” said Enrico Camerinelli, senior analyst with Aite Group and author of this report. “In actuality, the solutions made available under the SCF banner cover the wider spectrum of the source-to-pay, plan-to-fulfil, and order-to-cash supply chain management business processes.”


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