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"Management of Financial Instruments in Supply Chain Management"
According to the Small Business Administration, 20% of businesses fail within a year, 50% within five years, and 77% within ten years. Further, a U.S. Bank study cites a lack of cash flow and capital management causes 82% of business failure. Since financial institutions can supply businesses with funds to meet their cash flow needs, it is important for business leaders to understand how to manage financial products. However, research on the subject, such as a 2013 Intuit study finding 44% of business entrepreneurs do not understand basic financial concepts, demonstrates business leaders do not have the financial savviness for managing financial products in their supply chain. This paper seeks to understand the impact of leadership’s behavioral finance attributes on an organization’s supply chain financial performance. The primary independent variables of the study are character, competency to manage their own personal finances, and network of relationships outside of the organization. The method for proving the author’s hypotheses is the mixed method featuring qualitative and quantitative variables. Experimental surveys gather data on the respective variables of the study, and an empirical analysis shows the variables impact on supply chain surplus. Prior studies leverage performance metrics from secondary data, but this study emphasizes behavioral finance and experimental survey data. With this approach, the findings capture the human and intellectual aspect of managing financial instruments in supply chain management. This research is significant since the findings will provide business leaders with guidance in managing financial instruments to better serve their organization.
Matthew Zewe, Commercial Lender, ERIEBANK
Date: Thursday, March 11, 2021
Time: 12:00 - 1:00 pm
Learning Objectives:
1) Understand leadership’s personal finance attributes in the context of supply chain management
2) Review current literature and past studies on the subject of behavioral finance and supply chain management performance
3) Design an empirical model and framework that could be used to test research hypotheses
CPE Information
Instructional method: Group-Internet-Based
Recommended CPE Credits: 1 Credit (approval pending)
Experience Level: Basic
Prerequisites/advance preparation: None
Financial Executives International (FEI) is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. For FEI Self-Study CPE credits, one credit hour equals fifty (50) minutes according to NASBA guidelines.