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Aim of Supply
chain Management (SCM) to provide transmission of goods and information with
highest level of customer satisfaction at the lowest possible cost. A supply
chain is the network of the things involved in delivering finished goods to the
customer (Lindeke RR (2014) Supply chain management). The definition of the
Supply Chain Management (SCM) “in the process of planning, organizing,
implementing and controlling of the four things (material, capital, information
and manpower) from the point of production (supplier) to the point of Sale
(customer), forward & reverse, effectively & efficiently in order to
satisfy customer needs. “Supply chain Management as the integration of business
process 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 its
invoices to a bank at a discount as soon as they approved by the buyer, so that
the risk of seller is reduced as the time of sale. The purpose of FSC to make transparency
in processes between purchase to-order and order-to-cash (Kristofik & Hoff,
2012).Globalization is
driving banks to examine new ways to cater to corporate clients, including
financial supply chain management (FSCM). Financial Supply Chain
Management is generally defined as a set of financial activities happened various
parties involved in a supply chain – i.e. the customer, producer and the
financing institution to reducing financing costs and improved business efficiency (Vousinas & Ponis, 2017). “The goal of
financial supply chain management is to make celerity in processes involved from
purchase to payment and sale to cash, as well as processes involved in
ordering, invoicing, reconciliation and payment” (Kristofik & Hoff, 2012). “Growth
of the bank stands on the relationship
between Supply Chain Management (SCM) practices, and Organizational performance and it is also found that information and
communication technology (ICT) had a major role in determining the performance
of bank. The study recommends that to use correct ICT methods should be applied
to promote the competitiveness of banks and improve performance” (Kimechwa
et al., 2015).

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