The Research Of Logistics Financial Models Based On Fourth Party Logistics And Incentive And Supervision Mechanism Of Logistics Finance

Based on the needs for SMEs to open up new financing channels, banks and other financial institutions to expand the potential markets, and logistics companies to improve their own competitiveness, the appearance of logistics finance has a very important practical meaning. Logistics finance is the integration of logistics, fund flow and information flow. While providing effective financial support to the flow of goods in the supply chain, it helps banks, logistics companies, financing enterprises and even the supply chain to achieve a win-win situation. In China, logistics finance develops very quickly, but it has encountered many problems also. The contents of research that the paper has done on logistics finance are as follows:(1) Based on the background, the concept, and main participants of logistics finance explained, the paper presents the limitations of logistics finance with only third-party logistics participating in and the advantages of logistics finance containing fourth-party logistics.(2) In view of difficulties and challenges faced by steel industry, the paper analyzes the necessity that logistics finance is used in the steel industry. And in accordance with the specific characteristics of the industry, the paper designs advance payment financing models with4PL participating in to solve funds shortage in the steel industry chain downstream enterprises.(3) The paper studies on one of key problems that affect the efficiency of logistics finance with4PL participating in-how does banks encourage4PL to work positively in order to reduce the risk by the greatest extent. By applying principal-agent theory, the paper studies the banks’incentive and supervision mechanism for4PL under the condition of asymmetric information. And the conclusions are as follows:Banks should take a method concluding both incentive and observation to encourage4PL to work positively; the paper presents the condition that principals would like to observe the state of nature. And banks are willing to observe only if the cost of the observation is within a certain range.The paper further improves and develops the theory of logistics financial theory, and the conclusions are useful for avoiding4PL’s moral hazard, motivating banks to participate in logistics finance and expanding the application range of logistics finance.