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Clarifying the purpose of supply chain financing: A response to ‘On what is being funded’

Rudolf Leuschner et al.

Journal of Purchasing and Supply Management2026https://doi.org/10.1016/j.pursup.2026.101124article
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Abstract

• We agree with Professor Gelsomino (2024) that supply chain financing (SCF) literature has been too tactical and limited in focus. • Profit and cash flow are results of the business , and they are captured in the company’s financials. The intertwined nature of these concepts is more than just a choice a firm makes. • Although cash flow is central to firm survival and strategic flexibility, it has received surprisingly limited theoretical attention in the supply chain management literature. This focus reflects a structural separation between SCM and corporate finance. • Maintaining positive cash flow before profitability arrives can be enabled by utilizing innovative SCF techniques. • The embedded nature of supply chain capital makes transactional arrangements, rather than financing contracts, the primary mechanism through which liquidity is created, shifted, and allocated within and across firms. • SCF involves both funding the organization through the supply chain and funding the supply chain through the organization ( Leuschner, et al., 2023 ). • Using the organization to fund the supply chain generates strategic benefits that extend beyond short-term liquidity support to suppliers and customers and can be explained through multiple organizational theories. • The goal of supply chain management is to optimize the financial flow of a focal company, and the means to this is to adopt a SCF orientation.

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https://doi.org/https://doi.org/10.1016/j.pursup.2026.101124

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@article{rudolf2026,
  title        = {{Clarifying the purpose of supply chain financing: A response to ‘On what is being funded’}},
  author       = {Rudolf Leuschner et al.},
  journal      = {Journal of Purchasing and Supply Management},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1016/j.pursup.2026.101124},
}

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0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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