Reverse factoring in the supply chain: objectives, antecedents and implementation barriers
Liebl J, Hartmann E, Feisel E (2016)
Publication Language: English
Publication Type: Journal article
Publication year: 2016
Journal
Publisher: Emerald
Book Volume: 46
Pages Range: 393 - 413
Journal Issue: 4
DOI: 10.1108/IJPDLM-08-2014-0171
Abstract
Purpose
Reverse factoring (RF) can generate win-win situations for buyers, banks and suppliers. However, the supply chain management literature generally tends to ignore financial influences and accounting support structures. Research in the area of RF is relatively new and considerably fragmented. The purpose of this paper is to address this research gap and provide an analysis of the objectives, antecedents and barriers of implementation.
Design/methodology/approach
The study contributes fundamental new insights derived from 11 case studies. In total, 28 interviews were conducted from the perspective of buyers, banks and suppliers and analyzed regarding influencing factors of different RF approaches.
Findings
RF predominantly is used to extend days payable outstanding. However, secondary objectives such as the reduction of supplier default risk and process simplifications also play an important role. The number of integrated suppliers, dependence of suppliers on their buyers, spread between internal refinancing and RF costs and the diversity of target agreements strongly influence these objectives and therefore the configuration of RF solutions.
Originality/value
Most studies fall short of exploring the mechanism of RF from all of the different perspectives of buyers, banks and suppliers. This approach allows new insights regarding prerequisites and different motivations behind RF.
Authors with CRIS profile
How to cite
APA:
Liebl, J., Hartmann, E., & Feisel, E. (2016). Reverse factoring in the supply chain: objectives, antecedents and implementation barriers. International Journal of Physical Distribution & Logistics Management, 46(4), 393 - 413. https://doi.org/10.1108/IJPDLM-08-2014-0171
MLA:
Liebl, John, Evi Hartmann, and Edda Feisel. "Reverse factoring in the supply chain: objectives, antecedents and implementation barriers." International Journal of Physical Distribution & Logistics Management 46.4 (2016): 393 - 413.
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