A Supply Chain Financing Scheme For The Automobile Manufacturing Company

As the development of industry cluster, a lot of domestic companies become to be very important to one or more supply chains. They do also in face of a more complicated and intense competition (e.g. the competition between the companies on the same node but in different supply chains; and the competition between those companies in the same supply chains; and the competition between different supply chains). In another word, those companies who are dependent on supply chain to get improvement must undertake the competition that followed (e.g. the cash flow gap from the pleasant advances to suppliers and receivables).Those companies need to consolidate their importance in the supply chains and also to get the ability to bargain. Facing these challenges, the existing tools and method maybe suitable no more (e.g. the traditional financial method can’t settle the financing demand of those companies). First, those companies must change themselves to enhance competitiveness. Second, those related institutions (e.g. financial institutions and logistical· institutions) should offer more effective services.We take an automobile manufacturing company to be an example to introduce the supply chain financing in China. We introduced the effects of supply chain financing to solve the problem of companies’ fund shortage and we compared the supply chain financing and the traditional financing. We also described the process that commercial bank serve the company with supply chain financing methods through the case. At last, we analyzed the advantages of the supply chain financing methods to the companies, commercial banks and the whole supply chain.