from II - Four Strategies of Supply Chain Management
Published online by Cambridge University Press: 22 September 2025
Companies can innovate their business models to increase nonoperational profits, which helps reduce their sensitivity to supply–demand mismatches. Such companies have different supply chain priorities. Instead of focusing on perfectly matching supply with demand, they aim to improve cash flow management and reduce the cash conversion cycle. They can also benefit from supply chain finance solutions to offset the negative impact of their strategies on supply chain partners. This chapter presents an in-depth analysis of innovative business development with a focus on (1) inventory financing, (2) inventory securitization, (3) vendor-put insurance, (4) reverse factoring, (5) dynamic discounting, and (6) the letter of credit.
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