A Case Study Of Supply Chain Finance Of Z Company Based On Working Capital Management

Supply chain finance is not a new business,but today it has been given a new meaning.Due to the structural defects of the current domestic mainstream financial services,which can not fully match the financing needs of small and medium-sized enterprises,the rapid development of accounts receivable,financial leasing and other financial developments,as well as the strong support of national policies,China's supply chain financial industry has entered a stage of rapid development.Construction enterprises usually have a large demand for capital,but their production,sales and repayment modes have a long cycle,low efficiency of capital use,high cash turnover pressure and high debt ratio are common characteristics of the industry,which may cause serious liquidity problems for construction enterprises in the construction industry,driving them to strive to do something in supply chain finance.This paper is mainly based on supply chain finance related research,working capital management theory and information asymmetry theory.Using case study method,taking Z company's leading supply chain finance as the research object,this paper deeply analyzed the development background of Z company's supply chain finance and its function path to core enterprise's working capital management.As a large-scale central construction enterprise,there are some problems in the supply chain fund management of Z company:Z company receives long repayment period from downstream customers,often needs to advance funds for project construction;however,due to the lack of liquidity,it can only delay payment to upstream suppliers,which aggravates the already very serious financial burden of upstream suppliers,leading to the operation of some upstream suppliers.Poor capital conditions affect the stability of the entire supply chain.In 2018,Z Company launched a supply chain finance business to help upstream suppliers finance.Based on the current situation of Z company's supply chain financial business,this paper makes a detailed analysis of the case and draws a conclusion.The research conclusion shows that the core enterprises can solve the problem of information asymmetry in supplier's conventional financing mode by providing panoramic transaction information,strategic relationship binding,double monitoring of behavior and results,thus shortening their own cash flow cycle,increasing cash turnover ratio and obtaining cash discounts,and reducing procurement costs costs.And reduce the operating costs of core enterprises.This study provides a reference for Z Company and other similar enterprises to carry out supply chain financial business in the future.