CHAPTER 2

AN INTRODUCTION TO
CHANNEL FINANCING
 CHAPTER 2

AN INTRODUCTION TO CHANNEL FINANCING

2.1 Introduction

As discussed in the earlier chapter, working capital management

is critical for all business firms. To improve the position of working

capital, several techniques and ways have earlier been used by the

companies with an objective of maintaining optimum level of working

capital like enforced Days Payable Outstanding extension i.e. extending

payment terms to suppliers and enforced Days Sales Outstanding reduction

(1)
i.e. enforcing small customers to pay early. But these techniques tend

to view working capital enhancement from a single perspective and the

focus is only on their individual financial issues rather than

understanding the bigger and wider picture. Longer payment terms to

suppliers are likely to affect adversely the commercial relationship as

well as the working capital position of supplier firms, resulting in unstable

and financially unsound supplier base. At the same time a small, less

powerful buyer may face the liquidity constrains if he is forced to pay

early. This shifting of financial burden from one party to another adds

significant risk to the supply chain. Strapped for cash and lacking

adequate access to affordable capital, suppliers may be forced to delay raw

material ordering, squeeze work-in-process inventories, or skip their

plant maintenance or quality processes.

(1) Eric Hofman and Oliver Belin, Supply Chain Finance Solutions - Relevance,
Propositions, Market Value, Springer Heidelberg Dordrecht Publication,
London, New York, 2011; Pg. No. 10
 (38)

This can trigger downstream delays and quality issues for the buyer,

including expensive manufacturing line shutdowns and late order execution

of critical customers. To stay in business, suppliers are eventually forced

to bury the cost of extended payment terms in the cost of goods sold. Thus

over the long term, cost-shifting to suppliers will result in an overall higher

cost of goods sold. In recognition of the contribution and the vast potential

of the small suppliers as well as their inherent infirmities, provision of

adequate credit to this sector has become a crucial element of a supply

chain.

With the recent credit crisis, large companies are seeing their supply

chains threatened by lack of liquidity. With competition no longer among

individual companies but among the entire supply chains, the big corporate

firms are exploring every area of end-to-end cost reduction. Therefore they

need a financial solution that could help them to make their entire supply

chain more stable and competitive.

In an attempt to address these challenges, the approach of Channel

Financing has become more prevalent.

But before discussing to the concept of Channel Financing, the

researcher strongly felt the need to understand and elaborate the concept

of “supply chain”.

2.2 Meaning and definitions of supply chain

The Original Equipment Manufacturers need the raw material to

produce finished goods. So they purchase this raw material from their

suppliers/vendors. The Original Equipment Manufacturer produce and

 (39)

sell the finished goods to dealers/distributors who sell these goods to

retailers. The retailers sell the goods to final consumers. This network starting

from vendor/supplier to consumer is called as “Supply Chain”. Thus a

supply chain not only includes the Original Equipment Manufacturer and

suppliers, but also includes transporters, warehouses, retailers, after sales

service providers and customers themselves. The range of activities that

encompass the supply chain include procurement of inputs, manufacturing,

assembling, transportation to warehouse, from warehouse to retail outlet

and finally transportation from retail outlet to the ultimate customer.

Diagram showing concept of supply chain

Source : www.indmedica.com
 (40)

From the above diagram it is clear that a supply chain is a network

of organizations that are involved through upstream and downstream

linkages in different processes and activities that produce value in the

form of products and services. It consists of all stages involved, directly

or indirectly, in fulfilling a customer demand. A supply chain is a system

of organizations, people, technology, activities, information and resources

involved in moving a product or service from vendors to end users. The

network of a supply chain is called as ‘channel’ or ‘passage way’ because

the raw material passes through various stages and ultimately reaches
consumers. And each participant of this channel i.e. supplier, retailer,

transporter etc. is called as ‘Channel Partner’.

A typical supply chain is consists of three different sets of activities:

l In-bound logistics :

It is also known as Procurement logistics. In this stage the vendor/

supplier and Original Equipment Manufacturer interact with each other. It

consists of activities such as market research, requirements planning, make

or buy decisions, supplier management, ordering, and order controlling.

The in-bound logistics activities are related to - maximizing the efficiency

by concentrating on core competences, outsourcing while maintaining the

autonomy of the company, and minimization of procurement costs while

maximizing the security within the supply process.

l In-plant logistics :

It is also known as Production logistics. In this stage the Original

Equipment manufacturer converts the raw material in finished product. It

 (41)

connects in-bound logistics to out-bound logistics. The main function of in-

plant logistics is to use the available production capacities to produce the

products needed in out-bound logistics. In-plant logistics activities are related

to organizational concepts, layout planning, production planning, and control.

l Out-bound logistics :

It is also known as Distribution logistics. In this stage the Original

Equipment Manufacturer and dealer/distributor interact with each other.

It has the main task of the delivery of the finished products to the customer.

It consists of order processing, warehousing, and transportation. Out-bound

logistics is necessary because the time, place, and quantity of production

differ with the time, place, and quantity of consumption.

Definitions of supply chain

A supply chain is the entire network of entities, directly or indirectly

interlinked and interdependent in serving the same customer or set of

customers.

Handfield and Nichols Jr, distinguished professors of Supply Chain

Management have defined supply chain as, “The supply chain encompasses

all organizations and activities associated with the flow and transformation

of goods from raw materials stage through to the end user as well as

associated information flow.” (2)

2. Handfield and Nichols Jr., Supply Chain Redesign, Pearson Education Pvt.
Ltd., Delhi, 2003, Page No. 8
 (42)

According to D. K. Agrawal, “supply chain is a process which

interfaces and interacts within the entire company and with external

organizations like vendors, carriers, dealers etc. It is responsible for the

movement of products from vendors to customers through manufacturing

facilities, warehouses, and third parties such as transporters, repackagers

etc.” (3)

A customer is an integral part of the supply chain. The ultimate

purpose of the existence of any supply chain is to satisfy customer’s

needs and requirements, in the process generating profits for itself. So

the activities of supply chain begin with a customer order and end

when a satisfied customer has paid for the purchase. The concept of

supply chain looks simple and uncomplicated. But in reality when an

Original Equipment Manufacturer typically purchases thousands of

products from hundreds of suppliers and distributes the finished product

through another large set of distributors, things become quite intricate

and complex.

A supply chain works as a cohesive single unit. It is equivalent

to a relay race where there are different players running one after another.

The first one hands the baton to the next player, who then tries to maintain

and even improve upon the performance of earlier runner and passes

on the benefits so derived to the next player. The race cannot be won by
(4)
best performance of one single player.

3 D. K. Agrawal, Logistics and supply chain management, Macmillan India

Ltd., New Delhi, 2007, page no. 54

4 Kulkarni and Sharma, Supply chain management – creating linkages for

faster business turnaround, , Tata Mcgrwhill publications, New Delhi, 2004
 (43)

Competing successfully in any business environment requires

companies today to become much more involved in how their suppliers
and dealers do business. As global competition increases, making products
and services that customer want to buy means the business has to pay
closer attention to where the materials come from, how their suppliers
produce products, how the finished goods are stored and transported etc.
Reduced inventories, lower operating costs, product availability and
customer satisfaction are all the benefits which grow out of an effective
supply chain.

Today many firms are making a conscious decision to par down the
organization, to focus more on core capabilities while trying to create alliance
or strategic partnerships with suppliers, transport and warehousing
companies and distributors who are good at what they do.

This team approach to making and distributing products and services

is becoming most effective and efficient way of doing business to stay
successful.

Along the supply chain, there are three parallel flows

1. Flow of goods and services –

This encompasses the products and services that move between the
suppliers and buyers within supply chain. The following Figure
shows the flow of material (“products and services”) from the source
of materials forward (or upstream) to the final consumer in the
external chain. It should be noted that there is also a backward (or
downstream) flow of materials, mainly associated with product
returns. The growing importance of reverse logistics in recent years
has sharpened the focus on management of these flows.
 (44)

2. Information flow -

Information associated with flow of goods and services and their

associated payments also flows through the supply chain. As shown
in the following Figure, information flows in the supply chain are
bi-directional. The flow or movement of materials or money is usually
triggered by an associated information movement. Effective
management of material and money flows is, therefore, predicated
upon the effective management of the related information flows.

3. Financial flow –

This encompasses numerous invoices and payments between the

channel partners of supply chain. In a supply chain, money flows
from the ultimate consumer of the product back down through the
chain. The timing of these flows is critical in ensuring that supply
chain companies maintain the ability to meet their ongoing operational
expenditure commitments.

Diagram showing three flows of supply chain

Source : www.iwarelogic.com
 (45)

As seen in the above diagram, supply chain is a three-legged

stool- the first leg is product, the second is information, and the third

is finance. It is dynamic and involves the constant flow of information,

products and funds between the different stages. Each stage of supply

chain performs different processes and interacts with other stages of

supply chain. The term supply chain gives images of information, funds

and products flowing along both directions of this chain.

For the last decade or so, companies have been focusing significant

resources on streamlining their supply chains. For the most part, this has

meant the physical supply chain—as in the movement of goods around the

world. Less attention has been paid, however, to the financial side of supply

chain management—the flow of money in support of the physical movements.

Generally it is observed that goods and information move faster through a

supply chain than finance. Companies are facing many challenges like

unreliable and unpredictable cash flows, slow processing of documents,

delays in reconciliations, high Days Sales Outstanding etc as far as the

financial flows of supply chain are concerned. If these challenges are

addressed, money saved can be shifted to more valuable uses.

To overcome these challenges, the concept of Channel Financing or

Supply Chain Financing (SCF) begun to evolve.

2.3 What is Channel Financing ?

Here the researcher has felt the need of elaborating the process of

traditional bank financing before discussing the concept of Channel

Financing.
 (46)

Traditional Bank Financing :

In the first stage of supply chain, the Original Equipment

Manufacturer purchases the raw material from vendor/supplier and

wishes to avail credit from vendor to the maximum extent possible. But

at the same time the vendor wish to get the payment for material supplied

as early as possible from Original Equipment Manufacturer. So the

Original Equipment Manufacturer approaches bank to finance for purchases

of raw material, avails the finance and pays off supplier.

In the second leg of supply chain the Original Equipment Manufacturer

converts the raw material into finished product.

In the third leg of supply chain, the Original Equipment Manufacturer

sells the products to dealers/distributors. The dealers wish to avail credit

from Original Equipment Manufacturer to the maximum extent possible.

The Original Equipment Manufacturer gives credit to dealer and

approaches banks for financing book debts/receivables.

This is nothing but traditional method of bank financing. The

traditional bank financing can be explained with the help of following

diagram (See next page) ... :

 (47)

Diagram showing Traditional Bank Financing

Raw Material Finished Goods

Original
Vendor/ Equipment
Supplier Dealer
Manufacturer

Payment Payment

Finance

Bank

From above diagram it is clear that in traditional bank financing

the Original Equipment Manufacturer, in addition to core activities of

production and sale also undertakes the responsibility of taking finance

from bank, paying suppliers, giving credit to dealers and refinancing it

from banks.

But why should an Original Equipment Manufacturer undertake

this activity and why not outsource the financing activity to other specialist
(5)
like bank and focus on core function of production and sales?

5. Krishna Mahankali, Channel Financing, IBA Bulletin, Vol. xxv No. 5,

May 2003, Page No. 14
 (48)

Instead of an Original Equipment Manufacturer taking finance to

pay the raw materials suppliers, why not banks finance suppliers? And in

the same way, instead of Original Equipment Manufacturer giving credit

and taking refinance from bank, why not banks give credit to the

dealers?

The facility of Channel Financing is nothing but an answer to

this question.

Forward and backward linkages in a business organization play a

significant role in the success or failure of the business entity. For (say) a

manufacturing or trading firm, while the suppliers of raw material are

important as they provide input for production, equally important is the

role of its distributors which sell products manufactured by the firm through

retailers to the ultimate consumer. Channel Financing relates to ensuring

that integrated financial and commercial solution is available to the entire

chain of supply and distribution, which could improve the health of the

firm, financed by the bank.

The facility of Channel Financing provides an opportunity to collaborate

and create benefits for each side of the transaction of supply chain and

improve the working capital.

Channel Financing, which is also known as ‘Supply Chain Financing’,

is a relatively new concept in the field of working capital finance.

Being a sophisticated face of working capital finance, it is a flexible

model which uses the synergies of supply chain by financing working

capital of dealer/distributor and supplier of big corporate house/Original

Equipment Manufacturer so as to ease the flow of goods. It covers the

 (49)

entire value chain in an organization right from supplier supplying the

material to the final stage of distribution. (6)

Channel Finance represents solutions available for financing goods

as they move from origin to final destination along the supply chain. It

helps the channel partners to grab the new opportunities and manage growth

efficiently. The use of Channel Financing may help the channel partners to

take up large projects that would otherwise have been unable to execute

due to working capital constraints.

2.4 Definitions of Channel Financing

Channel Financing is typically defined as, “a combination of services

and technology solutions that links buyers, suppliers, and finance providers

to improve the visibility, financing cost, availability, and delivery of cash

(7)
when supply chain events take place.”

Tower Group, a leading research and consultancy firm having head

office in USA defines Channel Financing as,” a category of solutions designed

to provide working capital financing and accelerated cash inflow to suppliers

on the basis of the value of physical or financial supply chain events such
(8)
as issuance of a purchase order or approval of an invoice.”

6. Shaveta Sharma, Supply Chain Finance – A Value Praposition, The Chartered

Accountant, Vol 55 No. 11, May 2007, Page No. 1771

7. Supply Chain Finance : The Next Big Opportunity, By William

Atkinson Publication : Supply Chain Management Review Date :
Tuesday, April 1 2008

8. So You Think You Understand Supply Chain Finance ? Publication

Date : July 11, 2007 Author / Source : Susan Feinberg, Research Director,
Wholesale Banking, Tower Group (July 2007)
 (50)

Aberdeen Group, a provider of fact-based business intelligence

research defines Supply Chain Finance (SCF)/Channel Finance as “a

combination of Trade financing provided by a financial institution, a

third-party vendor, or a corporation itself, and a technology platform that

unites trading partners and financial institutions electronically and

provides the financing triggers based on the occurrence of one or several

supply chain events.” (9)

Being a facility of working capital finance, Channel Financing is

about managing cash flow between companies along the supply chain

either in form of a payment between vendor and a buyer or in the form

of finance. It not only manages the flow of funds but also the flow of

information across the supply chain in form of documents like invoices,

purchase orders, payment approval etc.

Under the facility of Channel Finance, the Original equipment

Manufacturers provides working capital support to their chosen channel

partners at negotiated rate of interest through bank/financial institution. It

is different from traditional practice of standalone risk evaluation which

was focused only on channel partners financial strength & historic financial

performance.

The Channel Finance solution works best when the Original

Equipment Manufacturer has a favorable credit rating and can obtain a

lower cost of financing from the bank for their channel partners than the

channel partner’s traditional financing sources. The Channel Finance

9. Aberdeen Group, “Get Ahead with Supply Chain Finance: How to Leverage
New Solutions for End-to-End Financial Improvement,” July 21, 2006.
 (51)

model is designed to support those channel partners that are closely

associated, critical to the Original Equipment Manufacturer and have

strong business association.

The Original Equipment Manufacturers are large, creditworthy

firms that are of low credit risk. Compared to these large corporate,

their channel partners are typically small, risky firms who generally

cannot access easily any financing from the formal banking sector and

even if they get the access, the cost of credit is very high. The facility of

Channel Finance allows these channel partners to use their business

association with Original Equipment Manufacturers and get working

capital financing at comparatively lower rate of interest by using the

credit worthiness of the large manufacturer. Thus Channel Financing

enables the channel partners to effectively transfer their credit risk to

their high-quality customers and get an access to more and cheaper

working capital financing.

Being an innovative option for extending working capital finance it

covers :

l Discounting of trade bills drawn by manufacturer and accepted by

dealer.

l Providing overdraft/cash credit facility to supplier against purchase

order or specific purchase guarantee.

l Discounting of bills drawn by supplier and accepted by manufacturer.

l Invoice financing
 (52)

In the past, suppliers often reacted to the long payment delays by

factoring their receivables or discounting their bills when they needed

cash. Today Original Equipment Manufacturers are recognizing their

suppliers’ difficulties in accessing finance. And instead of taking a “no

tolerance” approach, they have started to implement a collaborative

approach in form of Channel Finance or Supply Chain Finance. This

technique is an extended version of Bill Discounting and its underlying

mechanism is Factoring. There are, however, important differences between

the three concepts.

See the Table No. 2.1 : Difference between Bill Discounting, Factoring and

Channel Financing - printed on the next page please.

 Table No. 2.1 - Difference Between Bill Discounting Factoring and Channel Financing

S. No. Basis of Differentiation Bill Discounting Factoring Channel Financing

1. Beneficiary of the facility Suppliers Suppliers Channel partners

2. Type of Finance provided Post sale Finance Post sale Finance Pre and Post Sale Finance

3. Form of Finance Advance made Purchase of Discounting/Purchasing of

provided. against bills Trade Debt by factor Bill / Invoice in case of
post sale finance and pre-
sale finance against
purchase order / purchase
guarantee.

4. Cost of Finance High rate of discount High rate of interest Negotiated rate of interest

(53)
(lower than bill discounting
and factoring rate)

5. Stamping of documents Stamping of documents Stamping of documents Stamping of documents is

increases the cost of increases the cost of not required
discounting discounting

6. Role of OEMs OEMs are reluctant to OEMs are not involved in OEMs play a main role in
accept the bill as it becomes the factoring as suppliers recommending the channel
payment obligation to approach Factors. partners for the facility.
honor the bill on due date

7. Initiative Supplier approaches bank Supplier approaches the Bank approaches the
for the facility factor for the facility OEM’s recommended
channel partners.
 Table No. 2.1 - Difference Between Bill Discounting Factoring and Channel Financing ... (continued)

S. No. Basis of Differentiation Bill Discounting Factoring Channel Financing

8. Nature of finance. Transaction based finance Finance on continuous Transaction based finance
basis

9. Grace days 3 grace days allowed Grace days equal to the No grace period
credit period up to a limit
of 60 days

10. No. of parties Two party agreement - Two party agreement- Three party agreement -
between financer and between factor and OEM, financer and channel
supplier supplier partner

(54)
11. Procedure Cumbersome procedure Cumbersome procedure Simple procedure

12. Research findings Research shows that SMEs Research shows that Very limited research has
are not finding bill factoring is more suitable been carried out in India
discounting attractive for large industries on this topic

13. Extension of payable No scope for Original No scope for Original Original Equipment
period Equipment Manufacturer to Equipment Manufacturer to Manufacturer may extend
extend the p ayable period extend the payable period. the payable period
 (55)

Ref. : l rbidocs.rbi.org.in

l Dr. Venkatramani, Facility of Factoring services, A Guna

Gaurav Nyas Publication – Think Line, Nashik, publication

No. 32, 2004

Channel Financing and Financial Supply Chain -

As the term “supply chain finance or channel financing” is frequently

confused with the “financial supply chain,” the researcher found it necessary

to define the latter term as well.

The financial supply chain is not a set of solutions or financial products.

Rather, it is the end-to-end sequence of financial processes that take place in

a commercial transaction, starting with the issuance of a purchase order and

concluding with the post settlement reconciliation between the buyer’s

accounts payable system and the seller’s accounts receivable system. The

concept of the financial supply chain does not imply any particular level of

automation, integration, or visibility among participants; nor does it imply

a specific manner in which a participant manages its working capital. It simply

denotes the financial processes that occur with a business-to-business (B2B)

transaction. (10)

2.5 Participants of the Facility of Channel Financing -

The working of Channel Financing illustrate banks playing a central

role for all the interested parties. It covers the entire supply chain of an

organization right from the stage of supplier supplying raw material to the

final stage of distribution of finished product to the final consumer.

10. So You Think You Understand Supply Chain Finance? Publication date :
July 11, 2007 Author / Source : Susan Feinberg, Research Director, Wholesale
Banking, Tower Group (July 2007)
 (56)

Thus Channel Financing plays a major role of establishing the

linkages from supplier to manufacturer to dealer /distributor to consumer.

Diagram showing participants of Channel Financing

I. SUPPLIER FINANCE
BANK
BANK

ORIGINAL
SUPPLIER < EQUIPMENT < DEALER
MANUFACTURER

II. DEALER FINANCE

From the above diagram it is clear that Channel Financing is basically

outsourcing of a major chunk of working capital finance of Original Equipment

Manufacturer.

2.7 Working of Channel Financing -

Channel Financing provides the facility of supplier finance and dealer

finance.

Being a flexible mode of working capital finance, the nature of credit

provided under Channel Financing can be both pre-sale and post-sale finance.
 (57)

In case of pre-sale finance, the finance is provided against purchase

order or specific purchase guarantee. Under post-sale finance, the finance

is provided against invoices. Thus under Channel Financing the finance is

provided as per the requirements of channel partners.

Under supplier finance, the finance is provided by bank to supplier

on procurements made by manufacturer or against a purchase order or

against specific purchase guarantee. The dealer finance provides a receivable

management solution to the receivables arising due to lifting of finished

goods by distributor from manufacturer. In this financing mode, data

regarding supplier and distributor activities is maintained by banks.

Diagram showing facility of Channel Finance

Raw Material Finished Goods

Supplier Manufacturer
Dealer
Cash for
Finished
Raw Material
on Due date
Payment for

Goods
Immediately
Payment for Finished
Goods on Due date
Finance

Finance
Bank
 (58)

2.7 Supplier Finance -

Under supplier finance, the working capital finance is provided by

the bank after consulting the concerned Original Equipment Manufacturer

or the Corporate House. The names of suppliers are recommended by the

Original Equipment Manufacturers to the bank for the facility of Channel

Finance. The facility is provided to those suppliers who have a direct relation

with the Original Equipment Manufacturer and financing is based on the

strength of their business relationship.

The procedure of supplier finance can be explained as follows -

1. Original Equipment Manufacturer recommends the names of suppliers

to bank. But now even banks are taking lead and approaching

manufacturers for getting the names of suppliers to whom finance

can be provided.

2. Bank appraises the supplier.

3. Manufacturer issues purchase order or specific guarantee to supplier.

4. A line of credit is opened by bank in the name of supplier.

5. If supplier needs finance for executing this order, he may avail finance

from bank against the order. Otherwise supplier delivers the goods

to manufacturer and issues the invoice which is discounted by supplier

with bank.

6. On the expiry of credit period, the Original Equipment Manufacturer

pays the amount due to supplier to bank.

 (59)

The effect of above procedure is that the Original Equipment

Manufacturer does not approach bank for finance to pay off supplier. But
the supplier takes finance from bank for raw material sold or to be sold.
Supplier gets the finance as per his requirements from bank. The Original
Equipment Manufacturer enjoys credit and on due date payment is made
by Original Equipment Manufacturer to the bank.

2.8 Dealer Finance -

Under dealer finance, the working capital finance is provided by the

bank after consulting the concerned Original Equipment Manufacturer or
the Corporate House. The names of dealers are recommended by the Original
Equipment Manufacturers to the bank for the facility of Channel Finance.
The facility is provided to those dealers who have a direct relation with the
Original Equipment Manufacturer and financing is based on the strength
of their business relationship.

The procedure of dealer finance can be explained as follows -

1. Manufacturer recommends the names of dealer/distributor to bank.

But now even banks are taking lead and approaching manufacturers
for getting the names of distributors to whom finance can be provided.

2. Bank appraises the dealers.

3. A line of credit is opened by bank in the name of dealer.

4. The manufacturer dispatches the goods to distributor.

5. The dealer/distribut or immediately pays for the goods of the

Manufacturer.

6. On the expiry of credit period, the dealer pays the amount due to
manufacturer to bank.
 (60)

The effect of above procedure is that the Original Equipment

Manufacturer does not approach bank for finance and does not give credit
to dealer/distributor. But the distributor takes finance from bank. The
Original Equipment Manufacturer gets the cash immediately for goods
supplied to dealer/distributor and on due date payment is made by dealer/
distributor to bank.

2.9 Documentation required in the Process of Channel Financing by

Banks -

Generally banks require following documents while approving the

proposal of Channel Financing :

1. Number of years of standing of dealership or supply agreement

2. Past record of business between the dealer/supplier and the

manufacturer.

3. Audited/certified financial statements of dealer/supplier for past

three years.

4. A letter of recommendation from Original Equipment Manufacturer.

5. Board resolution passed by Original Equipment Manufacturer in

their Board meeting.

After elaborating the theoriticial background of Channel Financing,

this research seeks to provide on overview and impact of Channel Financing
on its participants. The researcher is of the opinion that measuring the
impact of Channel Financing as a tool of working capital finance is of
crucial importance to determine its success and ability to strengthen the
capacity of industrial units.

Accordingly, for formulating the objectives of the study, an extensive

review of existing literature was undertaken.
* * *
 REFERENCES

BOOKS -

1. D. K. Agrawal, Logistics and supply chain management, Macmillan

India Ltd., New Delhi, 2007

2. Handfield and Nichols Jr., Supply chain redesign, Pearson Education

Pvt. Ltd., Delhi, 2003

3. Kulkarni and Sharma , Supply chain management – creating linkages

for faster business turnaround, Tata McGraw-Hill publications, New

Delhi, 2004

4. Eric Hofman and Oliver Belin, Supply Chain Finance Solutions-

relevance, propositions, market value, Springer Heidelberg Dordrecht

publication, London New York, 2011

5. Enrico Camerlinelli, Measuring the value of supply chain – linking

the financial performance and supply chain decisions, Gower

Publishing Ltd., England, 2009.

6. Dr. Venkatramani, Facility of Factoring services, A Guna Gaurav

Nyas Publication – Think Line, Nashik, publication no. 32, 2004

 (62)

ARTICLES -

1. Shaveta Sharma, Supply Chain Finance – A Value preposition, The

Chartered Accountant, Vol 55 no. 11, May 2007, page no 1774

2. William Atkinson, Supply Chain Finance : The Next Big

Opportunity, Supply Chain Management Review, Publication

Date : Tuesday, April 1 2008.

3. Susan Feinberg, Research Director, Wholesale Banking, Tower

Group, So You Think You Understand Supply Chain Finance?

Publication Date : July 11, 2007.

4. Krishna Mahankali, Channel financing, IBA Bulletin, Vol. xxv no. 5,

May 2003.

5. Aberdeen Group, “Get Ahead with Supply Chain Finance : How to

Leverage New Solutions for End-to-End Financial Improvement,”

July 21, 2006.

6. Bob Kramer, Dancing with banks, Supply Chain Finance insider,

Publication date:13 May 2010

7. Paul A. Robinson, HSBC, Financing the Supply Chain, March 2009

8. Kate O’Sullivan, Financing the Chain, CFO magazine, February 1,

2007
 (63)

WEB SITES -

1. The Role of “Reverse Factoring” in Supplier Financing of Small and

Medium Sized Enterprises – www.ruralfinancenetwork.org

2. Supply chain Finance: Are we there yet? – www.fpsc.com

3. Demystifying supply chain finance - www.pwc.com

4. Supply chain finance: Risk mitigation and revenue growth –

www.wellsfargo.com

5. Supply chain finance – what’s it worth? – www.imd.org

6. www.indmedica.com

7. www.iwarelogic.com

8. rbidocs.rbi.org.in

* * *