Exploring factors, outcomes, and benefits in supply chain finance: Insights and future directions for the U.S. healthcare system

This article examines the factors, benefits, and outcomes of Supply Chain Finance (SCF) within the U.S. healthcare system, focusing on optimizing cash flow, reducing financing costs, and enhancing supply chain efficiency. The paper used a structured literature review. 25 research publications from the Scopus and Web of Science databases were selected and examined, with the most prevalent approaches being analytical, case-based, and simulation. Key findings showed that SCF provides significant financial and operational benefits, such as lower financing costs, increased access to capital, and improved profitability and financial performance. The Cash-to-Cash (C2C) cycle, which includes measures such as Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payable Outstanding (DPO), is highlighted as a significant measure for demonstrating the financial value that SCF brings to supply chains. The study also emphasizes SCF's potential to create a "triple win" scenario for healthcare supply chain partners and financial service providers by facilitating efficient financing and lowering capital costs, particularly by leveraging partners with lower weighted average costs of capital (WACC). Technological integration, particularly with Fintech, has the potential to further streamline SCF procedures, improve transparency, and reduce decision-making costs, but regulatory complications continue to be a barrier. The study indicates that SCF can alter healthcare supply chains by enhancing liquidity and operational efficiency. The study concludes that SCF can considerably improve healthcare supply chains' liquidity and operational efficiency.