Financing Channels For The Construction Of Supply Chain Management Applications

With the deepening of globalization, more and more resources, businesses and people be integrated into the supply chain. Supply chain plays an important role in the modern business environment. Enterprise survives competition by becoming a member of a supply chain; the market becomes more efficient because of the competition between supply chains; Countries support and regulate the supply chain to strengthen national competitiveness and to achieve macroeconomic goals. Supply chain act as the channel for product flow, information flow and capital flow, reduces the cost of organizing the enterprises to produce and speeds up the flow of resources between enterprises, which achieves more efficient allocation of social resources. Therefore, supply chain research and practice is of highly significance.This paper studies supply chain finance and risk management. Firstly we discussed the organization economics mechanism that supply chain takes the place of integration to be the main form of modern business organization in consideration of enterprise development process; then, we pointed out the function of supply chain in materials, information and financial flows, particularly discusses the conflict between the shortage of funds in whole and the excess of fund at local, and points out the imbalance between demand and supply of funds in different companies within the supply chain. Therefore, in order to strengthen the competitiveness of the supply chain, the core enterprise in the supply chain has an incentive to help the relatively weak enterprises to eliminate"the barrel effect." Then, we studied the theory and practice of supply chain finance, including the methods, the advantages and disadvantages. Then we take the financing difficulties of small and medium enterprises as example to analyze the use of supply chain finance. We set a mathematical model to analyze the decision making of SME and proved the compatibility of supply chain finance in the construction of financing channel. Finally, the article discusses the risks in supply chain finance. We derived from the basic risk theory, studied risk resource of supply chain and supply chain financing, the transmission mechanism of risk, and the method of controlling supply chain risk.