AU2021103948A4

AU2021103948A4 - An advanced financial supply chain system (fscm) and method thereof

Info

Publication number: AU2021103948A4
Application number: AU2021103948A
Authority: AU
Inventors: Uchit Kapoor; S. Karthik; Manminder Kaur; Jyoti Khare; Hari Kumar Pallathadka; Abhra Pratip Ray; Arcot Purna Prasad; Ratchana Rajendran; Hemlatha Ramakrishnan; Nitin S. N.; Suruchi SHARMA; Priya Solomon
Original assignee: Individual
Current assignee: Individual
Priority date: 2021-06-08
Filing date: 2021-07-07
Publication date: 2021-09-09
Anticipated expiration: 2029-07-07

Abstract

The present invention generally relates to an advanced financial supply chain system and its method thereof.The method includes placing an order by customer from an e-commerce company thereby the e commerce company request a supplier for delivering the order; requesting a customer bank for payment of order placed; and paying amount of the order to an e-commerce company's bank and thereupon the e-commerce company transfers the amount to the supplier. 12 EI I I LL

Description

EI I I LL AN ADVANCED FINANCIAL SUPPLY CHAIN SYSTEM (FSCM) AND METHODTHEREOF FIELD OF THE INVENTION

The present disclosure relates to an advanced financial supply chain system and its method thereof.

BACKGROUND OF THE INVENTION

Supply Chain is a concept not applicable to only logistics, trade, in hard and outward freight and carriage but it is equally applicable to the services industry particularly to the finance domain where its application is basically focused on procurement, allocation, distribution, re distribution and appropriation of funds. Here funds do not mean cash in hand or at bank but only cash in pipe line.

In the view of the forgoing discussion, it is clearly portrayed that there is a need to haveanadvanced financial supply chain system and its method thereof. SUMMARY OF THE INVENTION

The present disclosure seeks to providea system and method based on financial supply chain management (FSCM) for performing online transaction at holistic level.

In an embodiment, an advanced financial supply chain system is disclosed. The system includes a user interface for placing an order by customer from an e-commerce company, wherein the e-commerce company requests a supplier for delivering the order. The system further includes a payment requesting unit for requesting a customer bank for payment of order placed. The system further includes a financial supply chain management (FSCM) unit for paying amount of the order to an e commerce company's bank, wherein the e-commerce company transfers the amount to the supplier.

In another embodiment, a method for advanced financial supply chain system is disclosed. The method includes placing an order by customer from an e-commerce company thereby the e-commerce company request a supplier for delivering the order. The method further includes requesting a customer bank for payment of order placed. The method further includes paying amount of the order to an e-commerce company's bank and thereupon the e-commerce company transfers the amount to the supplier.

In an embodiment, cyclic flow of payment mechanism comprises:

requesting for payment by customer to a customer bank; and receiving payment by the customer bank and thereby transferring payment from customer bank to supplier bank.

In an embodiment, individual invoice is generated for e-commerce company and customer, wherein the invoice for e-commerce company is generated by the supplier and invoice for the customer is generated by the e-commerce company.

An object of the present disclosure is to an advanced financial supply chain system.

Another object of the present disclosure is to perform financial processes at the holistic level, rather than viewing them as individual processes.

Yet another object of the present invention is to deliver an expeditious and cost-effective method for an advanced financial supply chain system.

To further clarify advantages and features of the present disclosure, a more particular description of the invention will be rendered by reference to specific embodiments thereof, which is illustrated in the appended drawings. It is appreciated that these drawings depict only typical embodiments of the invention and are therefore not to be considered limiting of its scope. The invention will be described and explained with additional specificity and detail with the accompanying drawings. BRIEF DESCRIPTION OF FIGURES

These and other features, aspects, and advantages of the present disclosure will become better understood when the following detailed description is read with reference to the accompanying drawings in which like characters represent like parts throughout the drawings, wherein:

Figure 1 illustrates a block diagram of an advanced financial supply chain system in accordance with an embodiment of the present disclosure; Figure2 illustrates a flow chart of a method for advanced financial supply chain system in accordance with an embodiment of the present disclosure; and Figure 3 illustrates a process flow of online transaction using financial chain system.

Further, skilled artisans will appreciate that elements in the drawings are illustrated for simplicity and may not have necessarily been drawn to scale. For example, the flow charts illustrate the method in terms of the most prominent steps involved to help to improve understanding of aspects of the present disclosure. Furthermore, in terms of the construction of the device, one or more components of the device may have been represented in the drawings by conventional symbols, and the drawings may show only those specific details that are pertinent to understanding the embodiments of the present disclosure so as not to obscure the drawings with details that will be readily apparent to those of ordinary skill in the art having benefit of the description herein.

DETAILED DESCRIPTION

For the purpose of promoting an understanding of the principles of the invention, reference will now be made to the embodiment illustrated in the drawings and specific language will be used to describe the same. It will nevertheless be understood that no limitation of the scope of the invention is thereby intended, such alterations and further modifications in the illustrated system, and such further applications of the principles of the invention as illustrated therein being contemplated as would normally occur to one skilled in the art to which the invention relates.

It will be understood by those skilled in the art that the foregoing general description and the following detailed description are exemplary and explanatory of the invention and are not intended to be restrictive thereof.

Reference throughout this specification to "an aspect", "another aspect" or similar language means that a particular feature, structure, or characteristic described in connection with the embodiment is included in at least one embodiment of the present disclosure. Thus, appearances of the phrase "in an embodiment", "in another embodiment" and similar language throughout this specification may, but do not necessarily, all refer to the same embodiment.

The terms "comprises", "comprising", or any other variations thereof, are intended to cover a non-exclusive inclusion, such that a process or method that comprises a list of steps does not include only those steps but may include other steps not expressly listed or inherent to such process or method. Similarly, one or more devices or sub-systems or elements or structures or components proceeded by "comprises.a" does not, without more constraints, preclude the existence of other devices or other sub-systems or other elements or other structures or other components or additional devices or additional sub-systems or additional elements or additional structures or additional components.

Unless otherwise defined, all technical and scientific terms used herein have the same meaning as commonly understood by one of ordinary skill in the art to which this invention belongs. The system, methods, and examples provided herein are illustrative only and not intended to be limiting.

Embodiments of the present disclosure will be described below in detail with reference to the accompanying drawings.

Referring to Figure 1, a block diagram of an advanced financial supply chain system is illustrated in accordance with an embodiment of the present disclosure. The system 100 includes a user interface 102 for placing an order by customer from an e-commerce company. The e commerce company requests a supplier for delivering the order. The user interface 102 is logged in by the customer before placing any order by providing customer credentials including name, address, contact number and bank details.

The user interface 102 provides ordering of various categories on items including essential products, service, and the like.

In an embodiment, a payment requesting unit 104 is associated with the user interface 102 for requesting a customer bank for payment of order placed.

In an embodiment, a financial supply chain management (FSCM) unit 106 is engaged with the payment requesting unit 104 for paying amount of the order to an e-commerce company's bank. The e-commerce company transfers the amount to the supplier.

Financial Supply Chain Management is a system which looks at the industry at a holistic level and not as individual processes which means that it is an end to end implementation cycle like ERP. These processes are visible and can be controlled through the chain system hence the name and can be capitalized upon too.

Figure2 illustrates a flow chart of a method for advanced financial supply chain system in accordance with an embodiment of the present disclosure. At step 202, the method 200 includes placing an order by customer from an e-commerce company thereby the e-commerce company request a supplier for delivering the order.

At step 204, the method 200 includes requesting a customer bank for payment of order placed. At step 206, the method 200 includes paying amount of the order to an e-commerce company's bank and thereupon the e-commerce company transfers the amount to the supplier.

In an embodiment, cyclic flow of payment mechanism includes requesting for payment by customer to a customer bank. Thereafter, receiving payment by the customer bank and thereby transferring payment from customer bank to supplier bank.

Figure 3 illustrates the process of online transactions in a financial chain system. The accounting cycle is basically a process which identifies, collects, records, summarizes, and accounts all monetary transactions during a particular financial year. Accounting Cycle has mainly 8 steps such as entries in journal ledger, trial balance, balance sheet, income statement etc.

Working Capital Management is a business strategy used by the companies to maintain adequate liquidity for routine transactions such as payment of wages, any contingency, mishaps etc. which happen on daily basis and are not recurring or regular rather uncertain. Working Capital Management focuses on three ratios primarily, i.e. turnover ratios, collection ratios and inventory ratios.

Financial Ratios

Ratio Analysis is a tool to study a company's liquidity, efficiency and financial strength through quantitative techniques which are numeric in nature. It helps in comparing the quarterly performances of same departments, companies and sectors/industry year on year.

Operating Cycle

The length of time to time lag taken by a company to convert raw material into finished goods in called as the operating cycle. This helps in determining company's financial health, in order to decide upon the payment of outstanding liabilities.

Flow of Steps in an Operating Cycle

1. Purchase requisition from the materials department.

2. Procurement of raw materials

3. Conversion of raw materials into semi-finished goods i.e. work in progress

4. Conversion of semi-finished into finished goods

5. Sale proceeds from the market

As explained above, these are five pillars of the advanced supply chain management system which can be seen in the four black columns i.e. working capital management, operating cycle, accounting cycle and financial ratios. These pillars control the flow and direction of funds in an organization as they are the gateways for procurement discussed below.

Process Flow

A cyclic flow of payment mechanism can be seen in the diagram from customer to customer bank , from customer bank to company bank, from company bank to supplier bank, from supplier bank to supplier ,

from supplier to company and gain to the customer. Purchase order flows from customer to company and from company to supplier. At every corner, the organizational pillars are standing erect to control the flow and direction of arrows which signify the commands. It is clearly visible that Working Capital management which governs the quantum of routine funds is affected by customer's orders bringing in cash. Operating Cycle controls the time frame of these arrows signified commands and helps in reducing time lags. Accounting Cycle reflects the reporting accuracy of purchase orders as in this case. Financial Ratios particularly Liquidity Ratios (Current, Quick), Solvency Ratios (Interest, Debt Service) and

Turnover Ratios (Cash, Stock) are of prime use here. Invoice keeps rotating between company and company's bank only.

The drawings and the forgoing description give examples of embodiments. Those skilled in the art will appreciate that one or more of the described elements may well be combined into a single functional element. Alternatively, certain elements may be split into multiple functional elements. Elements from one embodiment may be added to another embodiment. For example, orders of processes described herein may be changed and are not limited to the manner described herein. Moreover, the actions of any flow diagram need not be implemented in the order shown; nor do all of the acts necessarily need to be performed. Also, those acts that are not dependent on other acts may be performed in parallel with the other acts. The scope of embodiments is by no means limited by these specific examples. Numerous variations, whether explicitly given in the specification or not, such as differences in structure, dimension, and use of material, are possible. The scope of embodiments is at least as broad as given by the following claims.

Benefits, other advantages, and solutions to problems have been described above with regard to specific embodiments. However, the benefits, advantages, solutions to problems, and any component(s) that may cause any benefit, advantage, or solution to occur or become more pronounced are not to be construed as a critical, required, or essential feature or component of any or all the claims.

Claims

WE CLAIM

1. A method for advanced financial supply chain system, the method comprises:

placing an order by customer from an e-commerce company thereby the e-commerce company request a supplier for delivering the order; requesting a customer bank for payment of order placed; and paying amount of the order to an e-commerce company's bank and thereupon the e-commerce company transfers the amount to the supplier.

2. The method as claimed in claim 1, wherein cyclic flow of payment mechanism comprises:

3. The method as claimed in claim 1, wherein individual invoice is generated for e-commerce company and customer, wherein the invoice for e-commerce company is generated by the supplier and invoice for the customer is generated by the e-commerce company.

4. An advanced financial supply chain system, the system comprises:

a user interface for placing an order by customer from an e commerce company, wherein the e-commerce company request a supplier for delivering the order; a payment requesting unit for requesting a customer bank for payment of order placed; and a financial supply chain management (FSCM)unit for paying amount of the order to an e-commerce company's bank, wherein the e-commerce company transfers the amount to the supplier.

5. The system as claimed in claim 1, wherein an accounting cycle collective process is employed for identifying, analyzing, and recording accounting events of thee-commerce company.

Figure 2

Figure 3