On what is being funded: A response to ‘“to fund” as a new purpose of supply chain management: Making a case for supply chain financing’ by Leuschner et al. (2023)

This response to Leuschner et al. (2023) expands upon their conceptualisation of supply chain finance (SCF), arguing for a more strategic perspective. It contends that SCF risks being relegated to an operational role within treasury departments, thus limiting its potential. This response proposes a redefined ideal type for SCF that transcends tactical leverages for shareholder value optimisation, positioning SCF as a key driver for systemic change. The formulation of this new ideal type revolves around three core dimensions: micro-foundations, institutions, and corporate purpose. Micro-foundations require a deeper understanding of credit ratings across supply chains and an incorporation of broader literature, particularly concerning innovative programmes such as PUMA's sustainable SCF. Institutional aspects involve acknowledging and integrating the impact of entities such as rating agencies and governmental bodies on SCF practices. Lastly, aligning SCF with corporate purposes beyond profit maximisation and as a catalyst for systemic change is proposed. This re-conceptualisation aims at revitalise SCF as a strategic tool capable of addressing broader societal challenges and, ultimately, redefining its role in supply chain management.