Case Study On SMEs’ Supply Chain Financing

Small and Medium Enterprises(SMEs) are the cornerstone of the real economy, animportant force in the national economy and social development, also they arepromoting economic development, increasing employment opportunities, deepeningreform and opening up, improving people’s livelihood and so on. As though as the largenumber of SMEs in China, financing is a difficult problem for these SMEs’ survivingand developing for many years.In the long-term to explore the process, researchers find out the fact that SMEs areone part of supply chain can be the breakthrough to solute the financing problem. Andthe supply chain financing is precisely starting with the perspective of the supply chainas a entirety, depending the credit level of core enterprises, providing financial supportfor SMEs. In China, supply chain financing have experienced a rapid development inrecent years.However, because of China’s supply chain financing is in the initial stage ofdevelopment, there are many defectives exits: extensive management pattern, not wellorganized management system, non-standard operating procedures. In addition to theearly development’s shortage, China’s supply chain financing is confronted withimmaturity regulatory system, core enterprises’ low participation enthusiasm, and thelack of supply chain financing concept coming from SMEs.Based on this background, with review of related literatures, this paper makes thefollowing study. First is of concepts and present introduction. In this part, the essaydefines the category of SMEs, makes clear of the supply chain finance’s conception,brings forward three dimensional cases. Second part is the case analysis. The cases arefrom three different aspects of the concept of supply chain financing: Wal-Mart, LiNing’s supply chain financing solutions, Shenzhen Development Bank’s supply chainfinance service, UPS’s financial logistics solutions. Through the analysis of the case,obtains conclusions how to do with supply chain financing including supply chainfinancing services providers, supply chain core enterprises and SMEs. The third part ispolicy recommendations. Pointed out that the government still needs to formulatepolicies and measures from the macro perspective to promote supply chain financingrapidly and healthy develop. This paper through case studies supply chain financing, with emphasis on the combination of theory and reality. Meanwhile, the study attemptsto break through the existing research model, standing on the perspective of SMEs butnot the logistics management and bank’s product designs. Furthermore, since supplychain financing is not strictly defined types and industries of SMEs, more kinds ofSMEs can enjoy preferential treatment.The supply chain finance as a new financing model, not only bring profit and themarket for banks and other institutions, but also brings hope to solve the difficultproblem of SMEs financing. As an innovative product, supply chain financing willsurely have a good prospect.