Financial Supply Chain

Definition

A Financial Supply Chain (FSC) is a chain of financial processes, events and activities that provide financial support to a Physical Supply Chain participants.

Financial Supply Chain Management refers to the range of corporate management practices and transactions that facilitate the purchase of, sale and payment for goods and services, such as

• the conclusion of contractual frameworks
• the sending of purchase orders and invoices
• the matching of goods sent and received to these
• the control and monitoring of activities including cash collections
• the deployment of supporting technology
• the management of liquidity and working capital
• the use of risk mitigation such as insurance and guarantees, and
• the management of payments and cash-flow.

FSC management involves the orchestration of a range of contributors to meeting FSC needs such as internal corporate functions, trading parties, and service providers in the area of supply chain automation and in the whole range of financial services. Supply Chain Finance is one service cluster supporting the FSC.