Abstract:
Liquidity is a primary concern for businesses. The purpose of this study is to understand the
impact of the collaborative liquidity management within the supply chain. Larger firms prescribe favorable
trade terms in the transactions and do not engage in value chain vision sharing with their smaller
counterparts. Smaller firms encounter challenges with liquidity and often face the risk of bankruptcy. Such
practice can threaten the entire supply chain. Instead, collaborative liquidity management can offer a win–win
scenario to both parties. In that case, what are the benefits of implementing a collaborative liquidity
management approach across the value chain, and what is the reward?