Research On The Motivation And Effect Of Nanjing Pharmaceutical Supply Chain Financ

The market’s activity has grown exponentially as the economy has advanced,transforming the rivalry between businesses into a rivalry between supply chains.The performance of enterprises in the supply chain has a direct bearing on the effectiveness of the entire supply chain,yet the lack of funds is the primary obstacle to progress.The development of supply chain operation can be advanced to help companies manage working capital issues.Thanks to the national financial reform,the emergence of Internet IT,and the backing of many,more and more industries now using it to meet the financing requirements of businesses.The introduction of the "two-ticket system" policy has caused a surge in cash flow difficulties for pharmaceutical distributors,thus intensifying the need for supply chain financing in the pharmaceutical circulation industry.This has been a major challenge for small and medium-sized enterprises in recent years,as they struggle with credit,guarantee,and financing.Supply chain finance financing has enabled pharmaceutical circulation enterprises to not only offer financing assistance to upstream drug manufacturers and small and medium-sized businesses,but also assist the core enterprises in managing the issue of delayed receivables collection,thus alleviating the financial strain of these businesses.The upstream and downstream enterprises of the pharmaceutical supply chain in Nanjing Pharmaceutical Company Limited are highly dependent on it and have a relatively high position in the industry.In 2018 Nanjing Pharmaceutical Company Limited,in order to address the long-term capital pressure they had been facing,set up a supply chain financing platform and began to implement supply chain financial services.This thesis seeks to investigate the consequences of the supply chain financing model on the pharmaceutical distribution company.We will provide a summary of Nanjing Pharmaceutical Company Limited,as well as the rationale for selecting them,and analyze the primary motivations behind their implementation of supply chain finance financing.In addition,we will also study Nanjing Pharma’s supply chain financing model and explore its effects.We find that Nanjing Pharmaceutical Company Limited mainly implements supply chain financing through commercial factoring.Meanwhile,the study by principal component analysis shows that the supply chain finance implemented by Nanjing Pharmaceutical Company Limited has a positive effect on the company’s finance,not only improving the efficiency of the company,but also increasing the solvency,growth and profitability of the company.Finally,based on the above analysis of the case of Nanjing Pharmaceutical Company Limited,conclusions and recommendations are drawn so that China’s pharmaceutical industry can better implement supply chain finance for financing by learning from it.