FSCM integration for real-time credit risk and receivables monitoring in ERP systems

Global supply chains are becoming more complex and there are more demands of financial transparency that results in creating a need to bridge Financial Supply Chain Management (FSCM) systems with Enterprise Resource Planning (ERP) systems. The paper provides a detailed overview of the working of FSCM systems in collaboration with ERP systems to track credit risk and receivables in real time. The paper reveals the transformation of organizations that adopt the old school of thought in financial management that relies on slow data processing and fragmented systems to the new system of operation that provides real time information via their real time access to data. The research explores the role of ERP systems as core systems that help organizations to integrate their data resources as they develop superior system visibility and deploy predictive risk assessment tools. The research document contains a conceptual framework that shows how FSCM processes interact with ERP Accounts Receivable (AR) module and real-time analytics systems. The study article introduces a credit risk monitoring system that employs real-time data processing capabilities in the improvement of financial outcomes and reduction of the probability of default. The review identifies key challenges, including data integration issues and system complexity and regulatory limitations, whereas the research study defined future research directions to explore the digital transformation and intelligent financial ecosystems. The study reveals that FSCM-ERP systems require adoption by organizations to increase their financial risk management in dynamic business environments.