Study Of Supply Chain Finance Risk Control For Timber Industry

The renewable and environmental feature of timber resources has promoted the vigorous development of the timber industry, but the domestic timber supply is limited, increasing the gap between supply and demand, so importing wood raw materials(logs, plates) from overseas has become the main way to solve the gap between China’s timber supply and demand. However, because the timber size, length, easy to tide, easy to crack, perishable and other characteristics seriously affect the valuation of goods, coupled with strict requirement for third-party logistics and financing institutions in timber regulation, storage, variety identification, the entrance standard of wood as pledge is high. On the other hand, apart from market conditions, the majority of SMEs or individual businesses who are in the adjustment period of the industrial chain need substantial financial support but have difficulty in obtaining the support through the banking system. as an emerging financing mode, provides a platform for the prosperity and development of timber industry. It has been the focus of social and economic research, especially in the supply chain finance, about how to better control the risk on the connection and cooperation of private financing and SME financing so as to protect mutual interests at the same time.Firstly, this paper systematically combs the existing literature and the related theoretical basis, especially analyzes the characteristics, main financing modes and risks of the timber industry supply chain. Secondly, describe the situations of YY Company from the company’s operating, business process, customer and financing situation. Based on the theory of supply chain financial risk management, the paper analyzes both external and internal risks, financial risk management, and the causes of related risks and problems that YY Company faced with. Then, in order to solve various risks and problems YY encountered in the operation of timber industry, we build a new financial risk control system of supply chain to control risk through financing risk management process planning, four financing pledge mode process optimization, pre-control, credit control and after-tracking and early warning system. What’s more, we construct the risk credit evaluation system according to the pre-loan risk of the financing, and assess the cases of the financing clients, and judge the financing feasibility of the customer’s credit risk through the scores. Finally, the paper puts forward two safeguard measures from internal link and external link on financial risk control system of YY Company’s supply chain. Hope it is valuable for the peer industry financing enterprises.