The Third Party Logistics Financial Services Research And Risk Analysis

With the development of the world economy and international trade, the traditional logistics develops rapidly, but it cannot fully meet the demand from the real practice for logistics services. Some need for logistics services is beyond the ability of the current logistics providers. Under this circumstance, the third party logistics step onto the stage. It is not very competent although it develops very rapidly, many services could not be provided. A deep study into China’s economic development shows that there are a lot of small and medium enterprises which takes up a very large proportion of all the companies in China, which causes significant impacts on the national economy. However, due to the small size, rapid development, cash flow always gets broken; thus, the development of its own business and supply chain operations has an urgent need for financing. Considering the inert characteristics of SMEs in the traditional financial services model, traditional financing providers such as banks are often reluctant to carry out financial services for SMEs. This in fact causes a lot of financing problems. In fact, there are varies kinds of difficulties in financing in most supply chains, which are labeled as the so-called supply chain with budget constraints. Thus supply chain cannot realize the maximized profit, and suffers a lot from a broken cash flow, while banks cannot benefit from the idle capital.From the perspective of supply chain management, this thesis discusses the operations of supply chain with budget constraints based on the theory of logistics finance and provides theoretical support based on Transaction Cost Theory, Fundamental Resources Theory and Network Resource Theory. Then this thesis issues a way for third party logistics to provide financing, and comes to the conclusion that this service can effectively improve the performance of supply chain with budget constraints. And quantitative calculations and simulation conducted later are consistent with the previous conclusions. Risk analysis is given next. After that the cases of famous and comparatively well-developed Chinese third party logistics providers Eternal Asia and OneTouch are stated.The last chapter summarizes the thesis and points out the deficiencies of the study which need to be delved into in the future.