THE FINANCIAL SUPPLY CHAIN MANAGEMENT: A RESPONSE TO THE NEW ECONOMY – CRISIS AND RECESSION ECONOMY

Supply chain- all the organizations and processes which refer to products and services from the view of buying organization. Typically covers everything related to raw materials and ingredients to consume. Supply chain management includes planning and the management of all activities engaged in supply and procurement, also conversion of all the logistics management activities. The ensemble of organizations, processes and informational activities, of products and financial funds is targeted to meet the satisfaction of the final consumer which is the determinant actor. Performance management is a continuous and evolutionary process in which personal skills and organizational parameters are improved over a period of time and its purpose increases individual and organizational effectiveness. Globalization and the intensity of competition for both large and small organizations has created an environment where there is relentless pressure to reduce the cost of sales and improve customer service. Financial Supply Chain Management (FSCM) is the management of the cash flowing between parties within the supply chain, whether in the form of a payment or short-term finance. The focus is on the average cost of working capital or finance for the total supply chain and working out how to reduce finance costs across the entire chain. One approach to FSCM is to calculate all finance-related costs embedded within the end-to-end supply chain and determine how best to reduce them without redistributing risk to the weaker members. Reengineering of the Supply Chain became in stages: reorganization of key processes, analysis of work processes, and amelioration of processes.