Application Research For Financial Supply Chain Of Steel Industry

During the social practice, I visited the largest coated sheet production base in thenorth of china. The base is concentrated a hundred coated plate and color coatedproduction enterprises. The largest galvanized, color coated production base anddistribution center in circulation, have gradually developed into a unique industrycluster. The research found that although the plating companies can be typicallycarried out the services of financial supply chain, there is a higher proportion oftraditional guarantee or mortgage loans. The ratio of the use of financial supply chainis quite low. The reason is mainly because these companies are relatively small,although there are large steel mills among the upstream suppliers, but theseenterprises are more closely with distributors of steel. Even if these companiespurchase from steel mills, due to fewer purchases, the large steel manufacturers arereluctant to provide credit support for these small orders. Then these companiescannot enjoy the services of financial supply chain. Can we re-examine the businesson the supply chain, selecting a suitable business as a new core business?Based on this, the topic of the paper is “application research for the financial supplychain of steel industry”. Through sorting and colleting the results of previous studies,regulating the use of research-based study supported by case study methods, I developand innovate the application research for financial supply chain of steel industry. Firstof all, I sort out and point out of the shortcomings of the traditional financial supplychain of steel industry, creatively divide the supply chain into two parts which arecore and secondary core parts. Through selecting sub-core businesses, the newprogram of financial supply chain can be used in these companies. In addition, thenew program can be used through establishment of businesses alliances in those smalland medium sized company. Then consortium’s access and exit mechanism arebriefly described. After repeated visits to the field of enterprise and research, I obtainfirst-hand information and select a typical local iron and steel processing companiesfor further case study analysis. Through analyzing its financing needs, upstream anddownstream enterprises and supply chain, the secondary core business is positioned toimplement of the financial supply chain services. In this paper, local businesses areselected to simulate a case study, which can verify the win situation of implementation of the financial supply chain.It is concluded that through identifying core business, the new program of financialsupply chain of steel industry can be widely used on the remote enterprises andachieved win-win situation.