Supply Chain Finance: A Strategic Enabler for Purchasing and Supply Chain Management

Purchasing and supply chain management (PSCM) is a subfield of supply chain management and focuses on the purchasing process. Relevant studies emphasize the importance of logistics, commodity flow, and information flow in the above process and make in-depth research. However, there are few studies on PSCM capital flow management, especially in terms of systematic review of the literature. This article adopts a systematic literature review (SLR) approach that focuses on the role of a common complementary capital flow instrument, supply chain finance (SCF), in driving PSCM. First, based on the focal point of credit risk during SCF operations, this article systematically categorizes the development of PSCM driven by SCF into three patterns: seller-driven, buyer-driven, and third-party-driven. Second, in the above categorization patterns, this study focuses on the influence mechanisms of SCF on the four main decisions (pricing, quantity, quality, and timing). By clustering the main decisions under the three patterns, the results show that financing risks and costs under SCF operations change lenders’ decisions (e.g., lending rates, credit cycles, etc.), which in turn change borrowers’ decisions (e.g., price, quantity, etc.) in the purchasing process, and ultimately drive the development of PSCM. This review establishes SCF as an active driver of PSCM, revealing its dual role as a cost optimizer and strategic resource enabler, while reinterpreting capital flow as a proactive “fourth driver” in supply chains to dynamically coordinate procurement decisions. Finally, we summarize these studies and make recommendations for future research.