Analysis On Supply Chain Finance Effect Of Logistics Enterprises

In recent years,in the context of financial "moving from virtual to real" and providing more services to the real economy,supply chain finance,as a new financing method,has become increasingly popular in China.At the same time,as the main body of China’s market,small and medium-sized enterprises are an indispensable part of the stable development of the national economy,ensuring employment,and promoting people’s livelihood.However,in the process of continuing to develop,small and medium-sized enterprises have encountered many difficulties.Especially under the influence of the COVID-19,the financing difficulties of small and medium-sized enterprises are more serious,which makes their financing channels become less and less,financing costs are too high,and credit approval is difficult.These are their problems.In February 2020,the Ministry of Industry and Information Technology issued the notice on responding to the COVID-19 and helping small,medium-sized and micro enterprises resume work and production,which proposed to "support the development of small and medium-sized enterprises,including diversified financing methods including supply chain finance",And proposed the idea of "supporting the development of small and medium-sized enterprises.Compared to traditional financing channels,supply chain finance has become an important way to improve the competitiveness of the industrial chain and alleviate the financing difficulties of small and medium-sized enterprises by virtue of its flexible credit granting,high information transparency,and high financing efficiency.".In the early days,supply chain finance was mainly dominated by financial institutions or core enterprises.However,in recent years,some logistics enterprises have also begun to enter the field of supply chain finance.As logistics enterprises play an important role in the supply chain,they possess a large amount of resources and information,and have the natural advantage of conducting supply chain finance business.As a leading enterprise in China’s logistics industry,SF Holdings actively develops supply chain finance.After years of practice,it has formed a relatively complete supply chain finance business model,which not only provides reliable and stable financing channels for upstream and downstream enterprises in the supply chain,optimizes the supply chain environment,but also improves the competitiveness of the enterprise itself.Therefore,this article selects SF Holdings as a research case,combining the characteristics of the logistics industry,This thesis deeply analyzes the supply chain finance business model and implementation effect of logistics enterprises.Through the analysis of this article,it can bring new development ideas for traditional logistics enterprises,and provide certain reference value for other logistics enterprises to carry out supply chain finance business,helping to promote the development of supply chain finance.This article uses research methods such as literature reading,case analysis,and data analysis to conduct research supported by supply chain management theory,information asymmetry theory,transaction cost theory,and sharing economy theory.It analyzes the supply chain finance model of SF Holdings,as well as the impact on financial and non-financial indicators before and after the implementation of supply chain finance,and then draws conclusions and inspiration from this case study.The specific research process is as follows: Firstly,this article provides a general overview of research results related to supply chain finance at home and abroad,and summarizes the main motivations for developing supply chain finance: improving the competitiveness of core enterprises,reducing financial institution risks,and reducing financing costs for small and medium-sized enterprises.Secondly,introduce SF Holdings to conduct a case study,briefly introducing the development history of SF Holdings’ supply chain finance,analyzing the reasons for SF Holdings’ implementation of supply chain finance,and comprehensively introducing SF Holdings’ four supply chain finance business models,namely: warehouse financing based on consigned goods,factoring financing based on accounts receivable,order financing based on purchase orders,and shun xiao loan based on customer credit,Then it points out the necessary factors for SF Holdings to successfully carry out supply chain finance.Next,it focuses on the analysis of the implementation effect of supply chain finance.Research shows that the implementation of supply chain finance significantly improves the profitability and operational ability of enterprises,stabilizes their debt paying ability,and promotes sustained and stable growth of cash flow.In terms of non-financial effects,it has enriched the organizational structure of SF Group and expanded its business scope;Increased customer trust in SF and enhanced customer stickiness;It alleviates the financing pressure on small and medium-sized enterprises in the supply chain and promotes the stable development of the supply chain.In addition,based on the characteristics of the logistics industry,this article points out the issues that logistics enterprises need to pay attention to when implementing supply chain finance.Subsequently,combined with the successful case of SF Holdings,this article proposes successful experiences for reference in addressing the above issues.Finally,based on the previous case analysis,the research conclusions of this article are drawn.First,logistics enterprises can develop supply chain finance,which can improve their profitability,solvency,and operational ability,increase their cash flow,and improve their financial performance in multiple ways;Secondly,supply chain financial services can alleviate customers’ capital turnover problems and have great competitive advantages in fierce market competition.Therefore,carrying out supply chain finance by enterprises can help enhance customer stickiness;Third,SMEs generally have financing difficulties,and supply chain finance can reduce their financing costs and effectively alleviate their financing difficulties.In future development,on the one hand,enterprises should focus on the application of big data in supply chain finance,promote the faster development of supply chain finance through big data technology,and innovate supply chain finance models based on market demand to enhance market competitiveness;On the other hand,with the rapid development of the supply chain finance market,the government should strengthen the supervision of supply chain finance to maintain market order,provide a more standardized development environment for supply chain finance,and promote the healthy and stable development of China’s economy.