Financial services in supply chains : success factors and future opportunities for traditional financial institutions

This thesis examines how the traditional banking institutions can add value in supply networks of products and services. The approach is based on a critical examination of the current range of services offered by traditional banks and similar financial institutions to supply chains and their component firms. Our primary hypothesis that we construct from such an analysis is that banking institutions have a vast field of opportunity to undertake more value-added roles in the operational aspects of supply chains; currently, the purview of many traditional banks is limited to the strategic aspects of supply chains, such as mergers and acquisitions, capital investments, and a largely passive or reactive monitoring of financial performance of supply chains. In order to underscore the significance of the research question, we first review the strategic drivers and the success factors for most banking institutions as they seek to enlarge their role in the functioning of large markets; these strategic drivers could explain the positioning of the current range of services offered by banks to supply chains and broader markets. Next, working from the other end, we review briefly the strategic, tactical and operational issues and priorities facing supply chain managers of today, with a view to understanding the potential roles that financial institutions can play in order to engage supply chain managers for greater mutual benefit. However, the research questions of this thesis are also motivated by the set of competitive challenges facing traditional financial institutions in their current sphere of influence and their current market domains.

Department dc:contributor.department

Management of Technology Program.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2005

Author dc:creator

• Fujimori, Yoshiro

Advisor dc:contributor.advisor

• Gabriel R. Bitran.

• Management of Technology Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/33554

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/33554