Supply chain management - Analysis of perception and spread
"Fine words butter no parsnips", they say. But financing cleverly does. Nevertheless, Swiss mentality tends to put everything to the acid test, first. What on the one hand guarantees a feeling of security and stability on the other hand leads to the fact that some new opportunities - such as Factoring can possibly offer - are nipped in the bud.
Laura Diethelm & Sebastian Stadler, 2019
Bachelor Thesis, Advanon AG
Betreuende Dozierende: Thomas Fischer
Keywords: Supply Chain Finance (SCF), Factoring, Working Capital Management (WCM)
Supply Chain Finance instruments (as for example Factoring) are common in countries as the US or Germany. Nonetheless, this kind of financing shows sluggish development in Switzerland - even though there already are some SCF suppliers.
However, since it is rather hard to assess, the full potential for those investment types is not fully clear. It is a matter of fact that Swiss companies react more cautiously to SCF solutions than comparable companies in other markets.
Thus, this paper portrays different forms of Supply Chain Financing and mentions their possible (dis-)advantages. It also provides overview about how far Swiss companies already know and use factoring. Benefits, drawbacks, distribution, perception and the potential of this form of financing are shown.
- literature research
- development of questionnaires
- contact potential interlocutors
- conduct interviews
- evaluate interviews (comparison among the individual talks and comparison with literature findings) - draw conclusions
- compile suggestions and recommendations
All the interviewed parties unknowingly agreed on their perception and feelings about Supply Chain Financing and especially Factoring.
Conversation contents also confirmed most of the expectations from prior research of literature. Even though factoring can offer many advantages to a company in use of it, there is a lot of educational work that factors need to do before the product will be as widely used as it is the case in other countries. Swiss companies still mainly associate Factoring with financial problems and debt collections. They do not trust factoring companies. Furthermore, it is part of the swiss mentality to being proud on being widely equity-financed and to focus on developing close relationships with banks to maintain attractive financing possibilities. However, if one can manage to improve the understanding of costs and interests within Factoring and to raise awareness for an encompassing cost-benefit calculation, there is some interest in the topic. Also, the new ISO-20022 implementation, which will be conducted in 2020 will make the application and use of Factoring easier for suppliers as well as for clients.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit: Accounting, Banking, Controlling and Finance