The Global Supply Chain Finance Forum represents a number of industry associations with members around the world, and it has been a core principle of this initiative, that the activities of the team be collaborative, inclusive and consensus-based.
The drafting effort, executed by a team of senior practitioners, has benefitted from the guidance of an international and multi-industry Steering Group, and has actively sought a wide range of commentary and feedback from the market, including providers of supply chain finance solutions as well as end-users.
The intent of this initiative is to help create a consistent and common understanding about Supply Chain Finance (SCF) starting from the definition of terminology, to be followed by advocacy in support of global adoption of the standard definitions. It is recognised that SCF propositions have evolved at different rates and in varying directions by region and at the level of individual providers; however, the view is that there is agreement on the clear benefits to the financial industry, regulatory authorities, clients and other stakeholders, from the development and dissemination of standard definitions and terminology. Further work based on the definitional framework developed in this document is likely to follow, including further standardisation and other development activity.
Numerous variations of SCF techniques and programmes exist today, and more will evolve, so that this document must of necessity be a ‘living document’ that will require periodic updating. The growing range of SCF providers and the application of technology to SCF solutions will further drive a need to keep up with market developments.
Global adoption of the suggested terminology – and the corresponding benefits which such adoption would bring – rest on advocacy which this document is intended to progress and support. We believe that such efforts should begin with this publication and recommend these standard market definitions for adoption.
The Global Supply Chain Finance Forum members developed a common website platform to allow users of Supply Chain Finance address questions on specific SCF techniques to subject matter experts or provide their feedback on the terminology suggested. The website also features the latest updates from the Forum, industry events and media articles where the standardized terminology is presented.