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Please respond to each discussion. 100 words minimum and please ask a question within the response. #1 Financial Decisions LACHELLE WILLIAMS posted Jun 14, 2023 8:13 PM Subscribe Previous Next
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Supply chain finance (SCF) describes a set of technology-based solutions that aim to lower financing costs and improve business efficiency for buyers and sellers linked in a sales transaction. SCF methodologies work by automating transactions and tracking invoice approval and settlement processes, from initiation to completion. Under this paradigm, buyers agree to approve their suppliers' invoices for financing by a bank or other outside financier–often referred to as “factors.” And by providing short-term credit that optimizes working capital and provides liquidity to both parties, SCF offers distinct advantages to all participants. While suppliers gain quicker access to the money they are owed, buyers get more time to pay off their balances. On either side of the equation, the parties can use the cash on hand for other projects to keep their respective operations running smoothly (Bloomenthal, 2021). Supply chain finance benefits the buyer when their credit is better than the seller and the source capital is at a lower cost. Buyers can work out a better offer and scheduled payments are extended. Sellers can receive payments and get rid of their products quicker. An example of supply chain finance is a buyer at Company ABC, purchases goods from the seller, Supplier XYZ. Under traditional circumstances, Supplier XYZ ships the goods, then submits an invoice to Company ABC, which approves the payment on standard credit terms of 30 days. But if Supplier XYZ is in dire need of cash, it may request immediate payment, at a discount, from Company ABC's affiliated financial institution. If this is granted, that financial institution issues payment to Supplier XYZ, and in turn, extends the payment period for Company ABC, for an additional further 30 days, for a total credit term of 60 days, rather than the 30 days mandated by Supplier XYZ.
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Reference:
Bloomenthal, A. (2021 May 31). Supply chain finance: What it is, how it works, example. Supply Chain Finance: What It Is, How It Works, Example (investopedia.com)
#2 Nicholas Straiton posted Jun 14, 2023 11:29 AM Subscribe Previous Next
This page automatically marks posts as read as you scroll. Adjust automatic marking as read setting Businesses and storage facilities never stop looking for new and improved methods of
communicating openly and honestly with their customers and business associates. Radio-
Frequency Identification, or RFID, makes it possible for businesses to increase the level of
transparency they maintain with their clients by enabling the monitoring of items all the
way through the supply chain. The radio frequency identification and tracking technology
known as RFID makes use of radio waves to identify and keep track of objects. The
technology consists of two distinct but essential components: the tag itself and the readers.
In addition, there are two different kinds of RFID tags: active and passive (Mills, 2023).
Passive tags only gain power when they are scanned by an RFID reader, whereas active
tags receive power from an internal battery located within the reader itself. Active tags are
therefore more secure than passive tags. Businesses are able to quickly and accurately
locate items within their warehouses or anywhere along the supply chain thanks to RFID's
real-time inventory management system, which is integrated into the technology. Because
of this, the risk of stockouts, overstocking, and the costs associated with these occurrences
are reduced. The risk of human error is reduced when employees in a warehouse have
access to an RFID reader, which allows them to monitor merchandise and investigate any
apparent irregularities (Mills, 2023). The root cause of problems that arise when receiving,
storing, or distributing products can also be pinpointed with the assistance of RFID.
Because it provides information about how or why a discrepancy or problem happened,
RFID can be of use to warehouse management systems in their efforts to prevent the
occurrence of issues that have already been resolved.
Resources
Mills, G. (2023, May 16). RFID use for supply chain: Benefits, uses, and future trends.
Thomasnet® – Product Sourcing and Supplier Discovery Platform – Find North American
Manufacturers, Suppliers and Industrial
Companies. https://www.thomasnet.com/insights/rfid-in-supply-chain/
