I am currently researching on the effect of supply chain finance on the performance of manufacturing companies in Nigeria. I intend to use profit margins, inventory and asset turnover as well as return on asset, equity and investment as measures of performance but I am at a cross road on what to use as a measure for SCF.
Impact on increase in working capital is a good measure as it affects the bottom line. Cost of debt would go up while inventory is high but can be offset by additional turnover and profits.
You can concentrate on financial components related to the overall SC productivity: output/input relationship (This is how i use to explain to the master students business, management and economics).
In this regard you can measure the following elements: return on assets (outputs) = profits (revenue-cost), and resources employed (inventory, cash, accounts receivable, fixed assets) ...
Some useful links:
Conference Paper Improving the Application of Financial Measures in Supply Ch...
Hofmann, E. and Belin, O. (2011). Supply Chain Finance Solutions. Berlin, Heidelberg: Springer-Velag Berlin Heidelberg.
Martin, J. and Hofmann, E. (2018). Towards a framework for supply chain finance for the supply side. Journal of Purchasing and Supply Management.
Hi,
In my opinion you need to use some software based on Activity Based Costing method, there is some example on the market.
good luck!
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