International Journal of Marketing & Financial Management

International Journal of Marketing & Financial Management

Print ISSN : 2349 –2546

Online ISSN : 2348 –3954

Frequency : Monthly

Current Issue : Volume 12 , Issue 1
2024


There are various ways through which supply chains in developing markets can be fine-tuned so as to accomplish the efficiency and economic growth. However, these markets pose enormous challenges particularly in regard to the banking structure that adversely impact on the growth and efficiency of the supply chains. In achieving optimum supply \chains, this paper particularly reviews the top financial challenges that supply chains in developing regions face and makes recommendations. As problems of limited availability of funds are posed to most of the developing markets, small- and medium-sized enterprises, which are majorly the backbones of supply chains in such regions, mostly do not have cash to borrow due to stringent lending measures and absence of collateral. This leaves them unable to invest prudently towards infrastructural and technological changes in the future, potentially minimizing weaknesses within their supply chain network. Again, developing economies are mostly characterized by poor economic conditions so turning around the currency sometimes, high inflation and, at times, wrong turns in politics These further cause problems with respect to supply chain operations making it all the more difficult for firms to develop and adhere to long- term plans. The absence of appropriate financial tools or rather risk management solutions adds to the woes as these chains are more prone to disruption. The same has to be changed through legislation action encouraging creative financial models and instruments. Through this, SMEs may access more funds through microfinance and mobile banking to invest in the resources and technology that they need. Supply chain resilience may also be improved and risks reduced by providing customized financial solutions.

Keywords: Financial sector, supply chains, emerging markets, major obstacles, and optimizing.