Globalization has evolved beyond merely sourcing in low-cost countries, now emphasizing growth opportunities in Asia’s emerging domestic markets, particularly China. This shift has led to the development of extensive global supply chains, increasing pressure on working capital. Consequently, various definitions of Supply Chain Management now incorporate financial dimensions, necessitating a more integrated view of material, information, and financial flows. However, the concept of “Supply Chain Financing” remains underexplored, with its practical application gaining traction only after the economic crises of 2008 and 2009. Unlike traditional financial instruments such as trade finance, which have existed for over a century, Supply Chain Financing utilizes the influence of larger supply chain members. These firms can facilitate easier and cheaper financing for smaller partners, enhancing their profitability through renegotiated purchasing prices. Recent research in supply chain risk management suggests that some companies may adopt a supply chain perspective to foster agile and resilient networks. In this framework, Supply Chain Financing plays a crucial role in ensuring liquidity for key upstream and downstream partners, enabling firms to manage risk effectively while capitalizing on growth opportunities in emerging markets like China.
