The paper discuses about the role of supply chain management in the banking sector, as the globalization has evolved most of the businesses just like the other businesses banking has also evolved and the supply chain management has played a positive role in expanding the banking transactions throughout the world.
Supply Chain Management
Despite their efforts to try to interconnect with the supply chains of companies, banks never very successful. Many think that, if there are profits, better integration between banks and their customers would mostly benefit banks (Carroll 1991, 48). The problem really is not the absence of technologies - computer facilities have long existed - but the prudence of business: they fear that providing access to information in their supply chains, banks acting within their prerogatives.
A review can be concluded that the issue of management decisions in the supply chain has been widely discussed and developed with the academic rigor and scientific co. The models reviewed here range from strategic areas (such as capacity planning, chains global supply, redesign, and restructuring configuration supply chain to facility location) through tactical areas (supply chain management decentralized, contracts, relationships between buyers and suppliers, subcontracting, bid selection, evaluation and selection of suppliers, collaborative planning) and arriving operational levels (integrated operations, distribution integrated planning responsive programming, purchasing, replenishment policies, inventories competitive planning, production, programming, production systems multi-stage delivery confi ability, coordination supply chain and information sharing).Process of supply chain in banking
If a bank has access to the entire supply chain of a manufacturer of consumer electronics, it may, for example, that a lot of finished products of a given value is exported to a country. If the two information systems were integrated, the bank may automatically contact the manufacturer and offer an insurance quote for the transaction or provide goods shipped automatically. Similarly, the bank may know that the components are imported in large quantities from a given country, leading to currency requirements automatically encrypt it could even be covered by commercial offers (Carter 2002, 52). Of course, these two interactive banking services would save time in the company. But they can also quickly be seen as spam if the company has made other arrangements. On the other hand, automatically executed, they would be offered by a single provider - which can quickly distort competition. The manufacturer will record some improvements in its processes, but may also be confronted with financial risks and therefore see its operating expenses increase. For a long time, banks are accustomed to greater operational transparency, particularly to meet the new regulations. But companies are not necessarily ready to give out their daily transactions - a caution which is not only motivated by security concerns. Some fear that the banks use this visibility to interfere in their business operations, which does not always play for companies. Economical challenges and role of supply chain in Banking
The current economic climate did little to bring banks and companies on this point. The lack of prudence shown by the banking sector during the past year - resulting in business bankruptcies, takeovers by ...