A Coordination Mechanism Based On Joint Contract Of Supply And Inventory Financing For Apparel Supply Chain

As one of the traditional pillar and important livelihood industries for our national economy, textile and clothing industry has an obvious advantage in international competition. It plays an important role in the market prosperity, expanding exports, creating jobs, increasing income and so on. Considering that the textile and apparel enterprises in China are mainly small and medium-sized ones, capital constraints increasingly become a major bottleneck which regulate the industry’s development. In addition, because the clothing industry products has the charateristics of timeliness and fashion, and increasingly shows personalized, small quantities and more variety. For the existence and development in the new economic environment, the textile and apparel supply chain needs coordination of the operation and management. The coordination mechanism, which based on joint contract of supply and inventory financing for apparel supply chain, provides a theoretical and methodological support to solve the typical problems of the ’product backlog’ and ’financing difficulties’ for the garment enterprises.Supported by the National Natural Science foundation research project’Researh of the generalized quick response mechanism, model and strategy for the textile and apparel supply chain (No.70772073), our research focuses on the system coordination of the captial-constrained apparel supply chain. The paper proposes coordination and management ideas and methods for apparel supply chain based on joint contract of supply and inventory financing, which on basis of the game theory, supply chain coordination and supply contract theory and relying on the new form of finance-supply chain finance. The mechanism is constructed to provide a practical guiding strategy which could solve the typical problems such as overstock and financing difficulties for the garment enterprises.In chapter1, first of all, on the basis of analysing the problems existing in terms of customer satisfaction, financial constraints, and information sharing of apparel supply chain, the paper discusses significance of the research about joint contract coordination mechanism of apparel supply and inventory financing. And then presented the research framework and innovative point combining research status.In chapter2, the research analyses the effect of the supply chain performance under buy-back and quantity flexible contract respectively, in the case of different decision mode and norn of the supplier and buyer is under risk preference. Then contributes the joint contract of buy-back and quantity-flexible, compares and analyzes the system correspondence of the supply chain under the three types of contract models.In chapter3, the research discusses the risk sharing and profit-sharing relationships between each participant of inventory financing under the perspective of game theory. Then expands inventory financing from the simple game only between financing enterprise and banks to the multi-player game between captial-constrained supply chain, banks and third-party logistics enterprises. Then analyzes the sub-game between banks and third-party logistics enterprises detaily, and builds an improved inventory financing contract.In chapter4, the research analyzes the characteristics of the apparel supply chain, and discusses the apparel enterprise’s subjective choice of inventory financing with structural equation modelings from the point of supply chain finance. And analyzes the process of inventory financing of the apparle supply chain with the third-party logistics enterprises. Then establishes the extended inventory financing contract model for the apparel supply chain.In chapter5, the research described the coordination process of the coordination mechanism with joint contract of apparel supply and inventory financing, from the perspective of collaborative and integration management, and analyzes the management process of the coordiantion mechanism for logistics, information flow and capital flow on the apparel supply chain. Then establishes the joint contract model of apparel supply and inventory financing, and analyzes the effect of each parameters for the parties involved and the whole system performance.In chapter6, the research establishes a credit-risk evaluation system, based on gray comprehensive evaluation, to evaluate the risk of the combined contract coordination mechanism and to control the systemic risk effectively. And analyzes the risk control points in the business contracts, to reduce the non-system risk. And on this basis, analyzes the operational risk control scheme of the combined contract coordination mechanism.Finally, all achievement of the thesis is summarized and the future research work is sketched out.