Charting the Future of Sustainable Supply Chain Finance

This chapter explores the future of sustainable supply chain finance (SSCF) through the lens of digital transformation. The chapter underscores that while previous research has predominantly focused on digital transformation’s impact on operations and supply chain management, little attention has been given to its role in supply chain finance (SCF). To address this gap, the chapter outlines a forward-looking framework that integrates these advanced technologies to enhance financing efficiency, reduce risks, and promote sustainability. Central to the discussion is the integration of artificial intelligence (AI) into SCF processes, which is transforming decision-making in purchasing and supply management. The chapter examines how AI-driven techniques facilitate better inventory control, mitigate the cash flow bullwhip effect, and improve credit risk assessment. These innovations are presented through a tripartite perspective that considers the viewpoints of buyers, suppliers, and SCF providers, emphasizing the multifaceted benefits and challenges associated with AI adoption in SCF. In parallel, the chapter delves into the emerging concept of Circular Supply Chain Finance (CSCF). CSCF extends traditional SCF by incorporating circular economy principles to minimize waste, optimize resource usage, and generate positive environmental, social, and economic outcomes. Furthermore, the chapter highlights potential research directions, including the need for more empirical studies to quantify the benefits of digital SCF technologies.