Company S Supply Chain Financing Problem Research

In the semiconductor wafer manufacturing enterprises, the average manufacturing equipments account for 70% of the total investment. The wafer manufacturing companies always make profit by making to order. Therefore, the good function of equipments is the lifeblood of making profit. Spare parts inventory control becomes more and more significant. Currently, the spare parts inventory management is preferred to the traditional manufacturing industry theory, such as vendor manage inventory, the JIT, consignment and so on. Some enterprises optimize their inventory situation; it always transfers the risk to the upstream suppliers at the same time. Obviously, the entire supply chain does not reach a Pareto optimal. How to phase in a new management model, to make the core businesses and upstream suppliers to get the maxim of benefits is the purpose of this paper.In this thesis, the S company, for example, we introduce the supply chain financing theory in supply chain management environment. S company could utilize credit financing from banks; and upstream suppliers could get the fastest recovery of accounts receivable. Meanwhile the S company has the opportunity to get the most appropriate payment term, the best price and service, the most saving cost of capital. We can call it multi-win situation.It is the first time that introducing the concept of supplies chain financing to the inventory management in semiconductor industry. I hope this thesis can bring new ideas on other companies’supply chain management in the same industry. Also, it could solve some financing problems among small and medium enterprises.