The Research Of Commercial Banking Supply Chain Finance Solution

For recent decades, competition between companies has escalated intocompetition between industry chains. Supply chain coordination of corecompanies and SMEs, which compose the whole industry chain ecosystem,has become and more important. The dynamic and uncertain nature of supplychain, globalized suppliers and customers, unpredictable market environmentand pressure of supply chain cost reduction have all contributed to theincreasing demand for supply chain finance. Supply chain finance solutionprovided by commercial banks deals with this problem from the perspectiveof cash flows. By connecting the nodes of the companies in the supply chaintogether, and realizing information sharing and strategic synergies of allnodes in the supply chain, the solution will improve the key process of supplychain coordination and the whole performance.Financial crisis in2008further accelerated the pace of domesticcompanies to promote supply chain coordination. However, existing supplychain coordination ignores the central role of financial supply chain. The imbalance between funds and credit can lead to low efficiency of supplychain management. This thesis first goes through relevant theories on supplychain finance. Based on the summary of relevant applications, leadingexamples from both home and abroad will be presented as examples toillustrate the typical operation model. Also, the article will discuss the majortrend of supply chain development under the driving force of e-commerce.Then, Shenzhen Development Bank, which makes supply chain finance oneof their strategic initiatives, will be used as an example to analyze electronicplatform of finance. The aim is to integrate financial services (cash flow) intosupply chain seamlessly and realize the coordination of commodity flow,logistics and information flow. Also, the bank will further differentiate itselfby realizing electronic financial products and services, marketing network,standardized risk management and automatic compliance. The thesis is tryingto analyze methods for commercial banks to distinguish themselves byconcentrating development strategy and differentiating operating strategy.