Study On The Logistics Finance Business Model And The Risk Management

ABSTRACT:The model of logistics finance has become an effective way to solve the problem of the issue of small and medium enterprises financing, it changed the model that financial institution make credit extension to single enterprise. It built the blue sea of logistics enterprises' business, it makes full use of the structural characteristics of the supply chain and the certainty of commodity trading, to provide the small and medium enterprises in supply chain of the core enterprise with financial support. Logistics finance has large market potential and has become a new competing area of banks. Thus, it's necessary to study the business model and risk of logistics finance systematically, so that this paper puts forward some improvement suggestions to innovation and development of logistics finance. The main contents of this paper are as follows:Firstly, base on discussing the related concepts, combined with actual cases of UPS and China Logistics, this paper analyzes the research status of logistics finance, and the evolution development of the model of logistics finance.Secondly, according to the demand of the model of logistics finance in China, this paper describes the connotations of inventory products and prepaid products. This study also makes a detailed economic analysis of logistics finance products, so that we could provide small and medium enterprises in China with method instruction when they need to select logistics finance products.Thirdly, from the perspective of whole logistics finance business, this paper systematically identifies and evaluates the risk source according to the business features. Through systematic analysis, this paper divides business risk into two parts:systemic risk and non-systematic risk. This study also classifies the risk from five points of view such as industry systematic risk, supply chain risk, credit risk and goods realization risk, to construct a risk assessment index system. Then this paper introduces the quantitative risk assessment method of weight, the factors that need to be considered, and the scoring method. Finally, from the perspective of system engineering, this paper constructs a risk management system of logistics finance business, and explains it from three parts:strategic risk management system, daily operational risks control systems and early warning control system, then analyzes combined with cases.This paper belongs to application research, and elaborates the model of logistics finance and risk management. According to the study, the objective of logistics finance is to solve the issue of small and medium enterprises financing, and realize the pursuit of common interests of small and medium enterprises, banks and logistics enterprises. Thus, the model of logistics finance is a practical, mutually beneficial and win-win integrated innovation service model. In theory, the study on logistics theory has obvious characteristics of multi-disciplinary. According to the introduction of financial-disciplinary research, logistics theory will be enhanced and meet the needs of development of logistics under modern economic conditions better. This paper investigates the role of logistics finance health, stability and development, from two perspectives of theory and practice, in promoting contemporary Chinese society long-term sustainable economic development.