Research On Mode Innovation And Risk Controlling Of Automotive Supply Chain Purchase-order Financing

As the pillar industry of the national economy, the automotive industry is an importantsymbol to measure the level of development of the national economy. Financing theautomotive supply chain is a win-win choice for the auto companies, banks or financialinstitutions, logistics companies and other parties participants. This article primarily aims atexploring the financing model innovation and risk assessment and control of SMEs in theautomotive supply chain.The paper first analyzes the characteristics of the overall development of the automotiveindustry. Funding difficulties of SMEs in the automotive supply chain have hindered thedevelopment of small and medium-sized enterprises, and will block the performance of thesupply chain as well. Based on systems theory, barrel principle and financing channelsprinciple, this paper analyzes the necessity and feasibility of the purchase-order financing andsums up the existing model and its difficulties while carring out.Purchase-order financing can solve the finacing difficulties of SMEs and help expandthe business scope of banks and financial institutions. However, under the traditional model,the high risk stop the banks who are willing to offer the loan, thus, the traditional model cannot really solve the financing difficulties. This paper has proposed a new way of thinking andpoints out three key points, namely establishing a dedicated account to control the capitalflow, cooperating with third party logistics enterprises, and recommending insurancecompanies. These points is the premise of model innovation, and will help spare partssuppliers solve financing difficulties. The paper proposes three new financing models(aunified credit model, orders pool financing, the relay financing) which can better solve thepreviously proposed financing problems. This article proves that the overall revenue willgrow by the new models comparing with the traditional one by the cost-effectivenesscomparison.Introducing the analytic hierarchy process and fuzzy mathematical theory, this paperestablished a risk evaluation index system and a risk assessment model of purchase-orderfinancing. Finally, the article prove the correctness of the risk assessment model by the instance of an automotive products company’s case.