Observatory

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Supply Chain Finance

Work Team

Description

The Supply Chain Finance Observatory of the School of Management of Politecnico di Milano was established in 2013 to address the increasing interest of companies and public authorities in the possibilities offered by supply chain finance solutions to optimise their working capital and access to credit. By Supply Chain Finance, we mean the set of models, solutions and services that can be used to optimise financial performance - especially in terms of controlling working capital - and which exploit knowledge gained from managing supply chain relationships. The aim of the Observatory is to generate and share knowledge about Supply Chain Finance, and so contribute towards spreading these solutions across the Italian market, to the benefit of all players, and stimulate debate and dialogue by creating a community of C-level executives.

Activity

The Observatory's planned actions for 2017-2018 started with a kick-off workshop on 6 June 2017 and are as follows:

  • Analyse companies that adopt supply chain financing solutions and/or services developed through potentially interesting cases in Italy and the rest of Europe.
  • Analyse the companies that form the “offer” of supply chain finance solutions and/or services, monitoring the main players that operate in the European landscape and analysing their business models.
  • Analyse the opportunities engendered by Supply Chain Finance for the new actors that are approaching this market.
  • Analyse the qualitative models that help in the process of making the optimum choices and evaluate the SCF opportunities that exist along the supply chain.
  • Organise meetings behind closed doors between researchers, C-level executives on the Observatory’s Advisory Board, partners and sponsors. Research work will be planned and monitored during these meetings, while, at the same time, establishing a solid network between all parties interested in the subject of Supply Chain Finance.
  • Organise operational work table sessions involving researchers, C-level executives on the Observatory’s Advisory Board, research partners and institutional partners, in which to debate SCF topics and work actively together on the key issues for Supply Chain Finance.
  • Organise international debates and meetings for researchers, C-level executives on the Observatory’s Advisory Board, partners and sponsors.
  • Organise a public convention to present the findings of the research, which will be attended by distinguished guests and the C-level executives on the Observatory’s Advisory Board.

 

The Observatory is part of the International Supply Chain Finance Community (www.scfcommunity.com), a body that promotes and shares knowledge on the topic of Supply Chain Finance, proposing initiatives, projects and programmes to propagate and implement various solutions at a primarily European level.

 

OBJECTIVES

 

RESEARCH
Conduct analysis and research that help companies, from both the supply and demand sides, and Italian public authorities to examine the issue of Supply Chain Finance critically (fields of application, technologies, international benchmarks, value chain, analysis of user companies, legislation, etc.).

 

COMMUNITY
Organise events so that the main players in this market and the Observatory’s Advisory Board directors can meet and debate on these topics.
Take part in matters concerning the International Supply Chain Finance Community.

 

COMMUNICATION
Create a culture and spread knowledge on the concept and solutions of Supply Chain Finance within companies in the sector and among potential users (private and public organisations).

 

EDUCATION
On the technical and legal aspects concerning the world of Supply Chain Finance. On the structure, relationships and features of specific supply chains.

Research

Research for 2017-2018, in line with the aim of the Observatory to generate and share knowledge about Supply Chain Finance, and so contribute towards spreading these solutions across the Italian market, to the benefit of all players, runs along four main streams:

 


The Supply Chain Finance market

  • Determine the scale of the Italian Supply Chain Finance market.
  • Compare the Italian Supply Chain Finance market with the major markets in Europe.
  • Identify the principle business models for implementing Supply Chain Finance solutions.
  • Identify the openings for innovative solutions (Inventory Finance, Purchase Order Finance, Vendor Finance, etc.).

 


The role played by the new arrivals:

  • Identify the main start-ups in the Supply Chain Finance field in Italy and abroad.
  • Detect the Fintech market in the Supply Chain Finance field in Italy and abroad.
  • Recognise the openings for Supply Chain Finance and the business models which can be used by the new actors in this field, i.e. the logistics service providers and credit insurance operators.

Evaluating creditworthiness

  • Study an integrated model for creditworthiness that incudes the supply chain perspective and well as the financial perspective.
  • Identify the opportunities for implementing a data sharing platform.
  • Identify the benefits for both suppliers and credit managers.
  • Evaluate the most appropriate and accurate risk assessment methods.
  • Examine how big data contribute towards evaluating creditworthiness.

Creation of a selection model:

  • Develop methods and tools to analyse supply chains from a financial perspective.
  • Build selection models that can be used to compare various Supply Chain Finance solutions.
  • Help companies in selecting the most suitable Supply Chain Finance solution, on the basis of its costs and benefits.

 

Alongside these main threads, we will also address four major topics that run across the whole sector:

 

Vertical Actions: For Public Authorities

  • Identify the opportunities linked to Supply Chain Finance for public authorities.
  • Identify the most suitable solutions for use among public authorities.

Applications for SMEs

  • Identify the opportunities linked to Supply Chain Finance for SMEs.
  • Identify the most suitable solutions for SMEs.

From an international perspective

  • Make a comparison between the solutions adopted in Italy and those adopted internationally.
  • See how solutions that have been implemented with success outside Italy can be introduced within the country.

SCF technology: enabling factor or strategic element?

  • Identify the opportunities linked to new technologies for the world of Supply Chain Finance (Big Data, API, Blockchain, etc.).

 

The Advisory Board plays a distinctive role within the Supply Chain Finance Observatory. This community of managers from production or distribution companies, with a variety of backgrounds (mainly in Finance, Logistics and Supply Chain, Purchasing and ICT) discusses and makes observations on the work carried out and shared by the research team, debating these matters on the basis of their own experience in the field. To see the Community of C-level managers involved last year go to this link.

Infographics

Infographics 1
Infographics Jul 20 2017

Supply Chain Finance: Tomorrow is already here!

Supply Chain Finance Observatory

Sponsorship Opportunities

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Partners and Sponsors

For further information, collaboration and support requests for the other researches of the Supply Chain Finance Observatory, please contact Claudia Cervatti (email: claudia.cervatti@polimi.it).