Research On Financing Products Of Supply Chains In The Liquor Industy

Chinese liquor industry has boomed in recent years. Accordingly, sales incomes and net profits also have increased significantly. However, many small suppliers and dealers still have difficulties in financing. On one hand the reasons for the problem are lack of the experience of capital operation and many unsolved problems of the businesses themselves; on the other hand financing products from banks limited by policy and defects of the financing products bring business about a great pressure of financing. At last, many downstream supplementary enterprises of liquor manufacturing have difficulty in financing, especially small and medium-sized enterprises. To a certain extent, the continuity, stability and effectivity of the supply chains are restrained, at the same time the banks loss the chances of extending their business.In recent years the banks have competed to provide a variety of products and services to extend the business of financing for the supply chains and the projects, but the actual effects is bad. it is still unwise to copy the way of traditional credit products since financing products are quite different from the traditional ones. The design principle of financing products is to adapt to the logistics, information strains and fund strains. Different businesses are quite different in their market positions and developments in spite of some similarities. This thesis, emphasizing on the practice of management, from the perspective of commercial banks, intends to optimize the process and risk-control measures on the basis of the current financing products of the commercial banks by analyzing the logistics, information and fund strains of Luzhou Laojiao. It also goes further to analyze the business opportunities and risks which would bring the business with financing from the commercial banks. It also tries hard to provide operatable methods to solve the problem of financing of liquor supply chains. This thesis is divided into three parts.The first part is the basis of the research. The introduction of chapter one is about the research background, the significance and methods. Chapter two is literature review. It elaborates the connotations of financing and financing products of supply chains from the perspective of commercial banks. And then it introduces the characteristics, and market value of supply chain finance, the types of supply chain finance products and the differences between these and the traditional ones.The second part is the body of this thesis. It includes chapter three and chapter four.Chapter three gives a brief introduction to the current situation and trend of China's liquor industry. It keeps an eye on the supply chain of Luzhou Laojiao and analyzes the characteristics of the company and currency settlements of the main links of the supply chain so as to find out both the problems and the reasons in financing.Chapter four, based on the previous chapters, provides the financial products mix for the supply chain, analyzes the possible risks of each link and then provides the risk-avoiding measures. Finally, it predicts the profits of the products.The third part, chapter five, is a conclusion of the thesis. It concludes the findings of this research and the implications for further researches.