Research On Operation Patterns And Risk Control Of Bulk Commodity Supply Chain Finance

Logistics is basic services industry that Involved People’s livelihood StateCouncil promulgated the revitalization plan of Logistics industry in2009, which setoff a wave of development of the logistics industry in the country. Third-partylogistics enterprises started Logistics finance business one after another by thisopportunity, which solved the Financing Difficulties in Small and MediumEnterprises on a certain extent and ingratiated the development of Bulk Stockelectronic commerce. through the full study on domestic and international researchand development status and logistics financial model applicable to commodity model,focusing on the current-based commodities trading electronic trading is developingrapidly, but the third-party logistics companies uncompetitive, single service, SMEfinancing difficulties in the background, based on third-party logistics companies,logistics and financial innovation proposed mode of operation, so that it can runthrough the entire supply chain, and studied the relevant risk management content.This paper analyzes the supply chain finance financial institutions, third-partylogistics companies, security companies or compensatory body, insurance companies,and other core business and credit participatory role and the role of the main parties.Further analysis of the accounts receivable financing, financing, and right next cargowarehouse financing pledge three basic commodity supply chain finance mode ofoperation, and the four basic characteristics of commodity supply chain financemode of operation carried out in detail. Finally commodity risk control operationmode of supply chain finance under studied, after analyzing the commodity supply chain risk characteristics of financial mode of operation, set up a risk assessmentsystem, and the use of modern VAR model to analyze the risk level.This paper proposes an innovative commodity supply chain finance mode ofoperation of the four basic characteristics, and the VAR model is introduced tocontrol commodity risk in the supply chain finance, risk producers, traders, logisticscompanies, commercial banks, control and warning provide quantitative indicators, amore intuitive reflect the risk profile of the funds, to overcome the traditionalreliance financial statements and the subjective judgment of risk management.With the changes of macro-economic environment, legislative rules and thecustomer’s demands as well as other factors, the financing operation pattern of thesupply chain of bulk commodity has been kept on developing and innovating, andthus inevitably, various issues needs to be discussed and studied on the road of itsdevelopment. This paper is to analyze and discuss on the various business models ofthe supply chain financing carried out by enterprises of all kinds based on adequateinvestigation and studies. Since the supply chain financing operation pattern to betaken by the third-party logistics enterprise runs through the overall supply chain, itis sure that some unpredictable new risks will arise during its operating process, theoccurrence of which might infect the relevant upstream and downstream enterprisesof the supply chain. Therefore, the third-party enterprises need to study and deal withthese risks and relevant influences in practice, for instance, to establish a scientificscreening method for identification and to plan the corresponding risks managementmeasures at the same time.This paper is trying to establish the operation principle and pattern of the supplychain financing of bulk commodity. However, the pattern needs to be improved anddeveloped constantly as some of the factors need to be considered in establishing themodel can not be fully incorporated into the model due to the limitation of theresearching capability of the author. In the risk quantitative model, only the market risk preventing index caused by the changing factors of the single-factor marketprice index, the loan-to-value ratio, is computed and analyzed, and based on whichthe weight of loan-to-value ratio is modified only by the Expert Judgment Method.The model will be more practicable and reasonable if the overall credit index systemof supply chain is incorporated into the model. The future research area may befocused on the income analysis on the supply chain financing of bulk commodityand the analysis on the overall advantages of the supply chain.