Case Study On The Application Of Supply Chain Finance In FMCG Industry

Under the traditional credit financial model,it is difficult for small and medium-sized enterprises to obtain low-cost loans from commercial banks because of their low credit level.Supply chain finance model is an innovative financing model that can help small and medium-sized companies to provide low-cost financial services.Different from the traditional credit financing model,the supply chain finance model expands the credit scope from focusing on a single enterprise with capital demand to other enterprises with cooperative relationship between the upstream and downstream of the supply chain,and gives credit under the endorsement of real trade cooperation and provides financial support,which can effectively help small and medium-sized companies to realize the problem of capital shortage faced by scale expansion and obtain lower cost financing funds.This paper mainly selects the application of supply chain financial model with HR company as the core enterprise for case study.First of all,the industry background,supply chain structure,transaction settlement methods among enterprises in the supply chain,credit policies in the economic environment and other factors of the case are analyzed,and the driving factors of the three parties involved in supply chain financing,namely,the core enterprise-HR company,the financing enterprise that needs low-cost funds-small and medium-sized dealers,the financial institution that provides credit services-HR bank,and the tripartite application of supply chain financial model are analyzed.Refine and summarize the existing operation mechanism of the supply chain financial model of the case enterprises.In the mode of supply chain finance,commercial banks mainly audit and evaluate the reputation of the core enterprise HR Company,and grant credit lines.The core enterprise HR Company then shares the obtained credit lines with small and medium-sized distributors downstream of the supply chain.Once the downstream distributor customers fail to repay the loans on time,HR Company will assume corresponding repayment obligations.This paper makes an in-depth analysis and summary of the potential risk sources of pattern application in the case.In order to reduce the risk of model application in the case and improve the financing efficiency of model application,HR company compares the financial costs of different financial products with the operating profits of dealers to ensure that dealers have the ability to repay themselves;Evaluate the credit strength of the cooperative dealer customers and screen the dealer access qualification according to the historical transaction situation to reduce the credit contract risk of the cooperative customers;By comparing the expected market development space with the existing market occupation,the capital demand of dealers is predicted,and the rational distribution of resources is realized;At the same time,in the whole process,the flow of funds,the progress,quantity and quality of commodity inventory distribution and storage are monitored to ensure the liquidity of inventory commodities.Finally,the author makes a comparative analysis of the impact of the application of the model on each participant in the case.The analysis of HR company,the core enterprise,includes the improvement of financial index revenue performance and the shortening of turnover cycle,as well as the changes of customers,market share and terminal store distribution rate before and after the application of the model;Small and medium-sized dealers get financing through the model,expand the procurement scale and improve the profitability of enterprises,while strengthening the cooperation stickiness with core enterprises;Commercial banks break through regional restrictions to achieve cross-regional business development,enrich financial product structure,improve financial service income and obtain more high-quality customers.Through the analysis of application cases,it is concluded that the supply chain financial model can fully integrate the information of business flow,logistics,data flow and capital flow in the supply chain,fill the practical problem of solving the fund gap of small and medium-sized dealers,and also help core enterprises to give full play to their credit advantages,broaden the channels of credit review of commercial banks,improve the efficiency of resource use,improve the value creation of the corresponding supply chain,and achieve multi-win results.At the same time,this case also provides reference experience for domestic beverage industry and other enterprises with the same problems in FMCG industry,and promotes the overall coordinated prosperity and development of supply chains in more industries.