SCAIL · Supply Chain AI Lab Data Hub

Supply Chain Finance

Yunbo Long 336 words 2 minutes Finance Risk Management Working Capital

Supply chain finance (SCF) encompasses a set of financial instruments, practices, and technologies designed to optimise the management of working capital and liquidity across supply chain networks. By bridging the gap between the flow of goods and the flow of funds, SCF solutions—such as reverse factoring, dynamic discounting, and inventory financing—enable buyers and suppliers to unlock value trapped in trade receivables and payables.

The growing complexity of global supply chains, coupled with increasing pressure on margins and cash flow, has driven significant interest in SCF from both industry and academia. Recent advances in data analytics, machine learning, and blockchain technology are transforming traditional SCF models, enabling more accurate credit risk assessment, automated invoice processing, and real-time visibility into financial flows across multi-tier networks.

Research in this field examines topics ranging from the design of optimal SCF programmes and the role of digital platforms, to the application of AI for credit scoring and fraud detection in trade finance. As supply chains face heightened volatility and uncertainty, the strategic importance of SCF in ensuring financial resilience and supporting sustainable sourcing practices continues to grow.

We invite you to explore the curated collection of key publications below, offering a comprehensive view of the evolving landscape of supply chain finance research.

List of Publications

  1. Kong, L., Zheng, G. and Brintrup, A., 2024. A federated machine learning approach for order-level risk prediction in supply chain financing. International Journal of Production Economics, 268, p.109095. [PDF]
  2. Zheng, G., Kong, L. and Brintrup, A., 2023. Federated machine learning for privacy preserving, collective supply chain risk prediction. International Journal of Production Research, 61(23), pp.8115-8132. [PDF]
  3. Kong, L., Zheng, G. and Brintrup, A., 2025. A hierarchical Bayesian model for payment delay prediction in supply chain financing. International Journal of Production Research (online). [PDF]