Research On Performance Evaluation Of Supply Chain Advance Payment Financing

ABSTRACT:Based on the premise of satisfying the need of customers, supply chain management aims to minimize supply chain cost and maximize profit. However, in the process of production and management, core enterprises play a dominant role in the operation of supply chain. They often put financial strategies focusing on their own profit and goal into practice. Small and medium-sized enterprises in the upper and down streams would face the problem of capital pressure, which eventually leads to the damage of the entire profit. As a kind of financial support, coordinating cash flow and reducing financial cost, provided by banking institutions, supply chain finance offers a new financial framework of organizing and regulating currency and capital for all the enterprises and solving the problem of bank loan for small and medium-sized enterprises.In China, the development of supply chain finance is still on the primary stage. Research on the evaluation and analysing of supply chain finance performance could provide theoretical basis for setting development strategies and standardizing operation. At present, research on the evaluation of supply chain finance performance is on the first stage of capital cost analyzing and performance indicators designing, and there is few complete method. This thesis mainly focuses on systemic performance evalution from different perspectives based on the advance payment financing, which is one pattern of supply chain finance services.This paper firstly establishes the system dynamics models of supply chain system under the advance payment financing. After analyzing function and structure of the system and relationship between key factors, the simulation result proves that the advance payment financing could benefit the supply chain operation. Then this thesis sets up the advance payment financing performance evaluation indicator system, and uses vectorial angle cosine and grey relational method to evaluate and compare the performance. Finally, the paper takes "Rong Wu Tong" project as an example, to prove the effectivity and feasibility of the model.