Aim of Supplychain Management (SCM) to provide transmission of goods and information withhighest level of customer satisfaction at the lowest possible cost. A supplychain is the network of the things involved in delivering finished goods to thecustomer (Lindeke RR (2014) Supply chain management). The definition of theSupply Chain Management (SCM) “in the process of planning, organizing,implementing and controlling of the four things (material, capital, informationand manpower) from the point of production (supplier) to the point of Sale(customer), forward & reverse, effectively & efficiently in order tosatisfy customer needs. “Supply chain Management as the integration of businessprocess from the end user through original supplier who provides products,services and information that adds value for the customers” according to(Douglas M Lambert). Supply chain finance allows a supplier to sell itsinvoices to a bank at a discount as soon as they approved by the buyer, so thatthe risk of seller is reduced as the time of sale. The purpose of FSC to make transparencyin processes between purchase to-order and order-to-cash (Kristofik & Hoff,2012).
Globalization isdriving banks to examine new ways to cater to corporate clients, includingfinancial supply chain management (FSCM). Financial Supply ChainManagement is generally defined as a set of financial activities happened variousparties involved in a supply chain – i.e. the customer, producer and thefinancing institution to reducing financing costs and improved business efficiency (Vousinas & Ponis, 2017).
“The goal offinancial supply chain management is to make celerity in processes involved frompurchase to payment and sale to cash, as well as processes involved inordering, invoicing, reconciliation and payment” (Kristofik & Hoff, 2012). “Growthof the bank stands on the relationshipbetween Supply Chain Management (SCM) practices, and Organizational performance and it is also found that information andcommunication technology (ICT) had a major role in determining the performanceof bank. The study recommends that to use correct ICT methods should be appliedto promote the competitiveness of banks and improve performance” (Kimechwaet al., 2015).