Financial Management of Supply Chains In Vietnam: A Case Study of Companies In The Steel Industry

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 12

Year of Publication : 2020

Authors : Nguyen Thi Kim Huyen

10.14445/23939125/IJEMS-V7I12P108

How to Cite?

Nguyen Thi Kim Huyen, "Financial Management of Supply Chains In Vietnam: A Case Study of Companies In The Steel Industry," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 12, pp. 56-61, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I12P108

Abstract:

Along with globalization's trend, Vietnamese traditional businesses' cash consumption habits in the business made some constraints, such as may not order or produce optimally. In Viet Nam, money acts as a catalyst if potential demand is high, but financial constraints leave them no choice but to order less. So implications for the supply chain can be detrimental where lack of financial resources at one level can plague the performance of the whole supply chain, at least temporarily until restored. This article focused on the analyzed length of inventory conversion (DIO), the Receivable Conversion (DSO), the payable conversion (DPO), and cash conversion cycle (CCC) (that is some of the important parts in the financial management of supply chains ) inside of the companies in the steel industry because they're directly related to the supply chain used by the sample companies. Based on the analysis data, the author recommended application solutions for the sample companies.

Keywords:

Finance, supply chain, the steel industry, capital, cash conversion cycle.

References:

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