A4 Conference proceedings

Leveraging inter-organizational working capital management by digitalizing the financial flows in the supply chain

LUT Authors / Editors

Publication Details
Authors: Lind Lotta, Schupp Florian, Kärri Timo
Publication year: 2018
Language: English
Title of parent publication: Proceedings of the 27th annual IPSERA conference
JUFO-Level of this publication: 0
Open Access: Not an Open Access publication


This study aims at improving inter-organizational working capital (WC) management by developing a solution for managing the financial flows in supply chains. The paper presents the current state of the cycle times of financial flows and proposes a model for WC optimization in the supply chain via payment term adjustments. The model is tested with seven scenarios, which show that remarkable amounts of WC could be released by adjusting and harmonizing the payment terms in the supply chain. The introduced model provides a novel perspective on
collaborative WC management in the supply chain by enabling win-win situations with a unique incentive system. The paper provides practical support for the optimization of WC at the supply chain level.

Last updated on 2020-28-02 at 12:15