A Case Study Of Supply Chain Financing Dominated By Core Enterprise

In the ever-changing market,many companies realize that it is difficult to find a foothold in the market based on their own development situation,so they gradually realize the advantages of enterprises cluster.Since 1990 s,the cooperation between enterprises had been gradually strengthened in response to the fierce market competition and the better met of market demands.The upstream suppliers and downstream distributors closely linked with the core enterprises of large scale,excellent credit and good profitability,in order to form a supply chain with stable trading relationship and real transaction background.Most companies lie in the upstream and downstream of a supply chain are small and medium sized enterprises(SMEs).Such enterprises can hardly obtain financing through traditional channels such as banks due to the restriction to their scale,credit,profitability and other conditions.The proposed supply chain financing brings together upstream and downstream enterprises to form a complete supply chain to finance from external financial institutions.The stability of the entire supply chain makes it easier for SMEs in the chain to win the favor of financial institutions.Supply chain financing can solve the dilemma of capital shortage of SMEs well.It turns out to be that the supply chain financing is the most effective and fastest growing financing method proposed in recent years to solve the dilemmas of the SMEs' financing.The core enterprises locate in the middle of a supply chain,they are the most strengthful,best credit and most dominating enterprises.Supply chain financing needs to base on the credit of the core companies.It is of great significance to study the supply chain financing from the perspective of core enterprises.Its participation in the supply chain financing can solve SMEs' financing difficulties.Meanwhile,it can further enhance the financing capacity of the upstream and downstream enterprises so that the financing can be more efficient,as well as improve the overall market competitiveness of the supply chain,which is beneficial to its own.The credit of core enterprise is the foundation of the supply chain financing.Its participation in the supply chain financing directly affects whether the entire financing project can normally operate or not.The core enterprise plays a crucial role in supply chain financing.However,in the current theoretical research on the supply chain financing,it is often based on the perspective of external financial institutions or upstream and downstream SMEs in the supply chain.Thus the importance of core companies in supply chain financing are often neglected,which makes it unable to exert their advantages of information acquisition and organizational regulation as a leading enterprise,and also lack the considerations of self-credit resources.Therefore,this paper discusses the supply chain financing from the perspective of core enterprises.The essence of supply chain financing dominated by core companies remains to be the supply chain financing and the purpose is to solve the financing difficults of SMEs.The innovation of this paper is from the perspective of core enterprises,which is differ from previous studies on supply chain financing from the perspective of SMEs.The research thinking of this paper is: Under the background financing difficulties of SMEs,it turns out to be that the supply chain financing is a very effective way to solve the financing difficulties of SMEs.But most of the existing supply chain financing studies are from the perspective of SMEs or external financial institutions and always ignore the important role played by core enterprise in the supply chain financing.The extent to which core companies participate in supply chain financing directly affects the smooth development supply chain financing.Therefore,it is necessary to conduct research on the supply chain financing led by core companies.At the same time,the paper selected large scale retail enterprises—Suning Tesco Group Co.Ltd.(referred as “Suning Group”)as a case study object for case analysis.Through the case study of the supply chain financing carried out by the Suning Group,we can understand how to guide the operation of supply chain financing in practice.This paper divides into five parts.The first chapter is the perface.It mainly introduces the research background and significance of the supply chain financing led by core enterprise,and summarizes the relevant foreign and domestic.The second chapter is an overview of the theory of supply chain financing dominated by core companies,including the definition,the connotation and role of core company led supply chain financing,the content and objectives,as well as an overview of relevant theoretical foundations.The third chapter is the introduction of the case of the supply chain financing led by Suning Group.It introduces the strategic motives of the supply chain financing dominated by Suning Group as well as the scheme and operation process.The fourth chapter is the case analysis section,which focuses on the analysis of the objectives of supply chain financing dominated by Suning Group,the specific implementation path of the supply chain financing,the risk control analysis,and the effect evaluation to specifically explain how do Suning Group carries out related supply chain financing in practical operations.The last chapter summarizes the case studies and draws conclusions of the case study and also makes suggestions for the supply chain financing led by the Suning Group.Through the previous case analysis,this paper believes that the supply chain financing dominated by Suning Group can effectively solve the financing difficulties of upstream suppliers.It consolidates its core position and enhances the competitiveness in the supply chain through supply chain financing,effectively controls the risk of supply chain financing.To achieve the common value creation with upstream and downstream SMEs,supply chain financing can effectively improve the flow of capital.At the same time,the supply chain financing of Suning Group is in line with the current new economic development trend.