The Research On Improved Operational Mode Of Logistics Finance And Risk Management

The logistics finance service that combines logistics service and finance service is one of main approaches to take an edge in the fierce competition for the third party logistics enterprise, the bank and the middle& small scale enterprise. The study about the operational mode of logistics finance provides a new idea and implementation to seek how to improve profit in the business innovation of bank and financial decision of enterprise with capital constraint, which has theoretical and practical significance at an extent.This paper reviews the literature and development about logistics finance. It summarizes the current operational modes of logistics finance, then based on their features, proposes an improved operational mode for the third party logistics enterprise that becomes a shareholder and monitors the capital flow. Under the case that retailer with capital constraint has only a single supplier, newsboy model is applied to investigate the optimal financing decision and operation decision under the core mode and improved operational mode of logistics finance. Then we use a numerical experiment to show the advantage of the improved mode. Finally, we analyze the risk management combined with the features of the improved mode under which a specific risk shielding measure can transfer the credit risk to operating risk. The extent of operational risk controlling determines the level of risk management.