The Value Analysis Of 3PL Enterprises Financing Business Model Based On Risk Pooling

Shortage of funds and financing are key problems for most of the small and medium-sized enterprises(SMEs),which restrict the development of enterprises themselves and even the whole supply chain.Supply chain financial services can help SMEs obtain necessary funds,thus improving the total value and efficiency of supply chain.As the center of the logistics and information flow,the third party logistics(3PL)can cooperate the different industries also upstream and downstream enterprises of supply chain to capture surplus by pooling risk.However,3PL will also leads to bullwhip effect and double marginal effect problem.Thus,the value of the supply chain financial services which provided by 3PL remains to be verified.By analyzing supply chain financing business model of Eternal Asia(EA)as an example,this paper qualitatively analyzes the operation mode of supply chain financing dominated by 3PL.On this basis,the paper considers a supply with a supplier,two manufacturers and a 3PL enterprise.The manufacturers and 3PL are capital constrained and in need of short-term financing,also both of them have bankruptcy risks.Combining the theory of risk pooling theory,game theory,also the newsboy model,the paper studies the value of supply chain financial services which provided by 3PL.By comparing the 3PL model with the bank financing business model,the paper concludes that 3PL financing business model can encourage manufacturers to increase orders and improve each enterprise's profits which on the supply chain.When considering bankruptcy loss,3PL enterprise can pool the supply chain risk and form scale effect more significantly,thus manufacturers will also choose the 3PL financing business to get higher profits and enhance the overall efficiency and value of the supply chain.The conclusion of this paper is helpful for 3PL enterprises to build a completed financing business pattern and form their core competitiveness.It also provides a theoretical foundation for enterprises in the supply chain to choose suitable financing business and improve their benefits.