Study On Supply Chain Finance Model Of The Costs And Benefits With Supplier-led

Since Chinese reform and opening-up, with the rapid development of the supply chain,the number of supply chain node companies has a significant increase, and these nodecompanies has play an important force for the national economic and social development.However, most node companies because their smaller scale or the inadequate of the reputationmechanism or other reasons, resulting the insufficient funds become a huge resistance to thenode companies’ further development. The current research of supply chain managementfocused on how to coordinate and integrate three areas of logistics, information flow andcapital flow. Among them, the majority of researches were about the coordination andintegration of logistics and information flow, the research on the capital flow of the supplychain is not much. However, the capital is a vital resource for the node companies’ survivaland development and operation, supporting the development of the supply chain.Supply chain finance is a new financing mode of proposed in recent years, which cantake advantage of the relations of the supply chain companies and the information symmetry.Supply chain finance could effectively solve the problem of financing for the node companiesand promote the maturity of the supply chain and protect the overall economic growth. Forthe overall efficiency of the supply chain, the study has established a supply chain financingmodel, which is led by the supplier of the supply chain. The study has applied qualitativeresearch and quantitative research methods, referenced the newest research status. Throughthe analysis of the characteristics and logical relationships of the supply chain finance withsupplier-led, the study has established a supply chain finance model of the costs and benefitswith supplier-led. Then the study has used numerical simulation to validate the cost-benefitmodel, and then studied how to overcome the financial constraint to achieve the optimaloverall efficiency of the supply chain.This paper is based on the view of manufacturer and retailer of node companies whichare affected by financial constraint. Build a cost-benefit model about the manufacturer andretailer, which directly to commercial bank financing. Meanwhile, the study also build acost-benefit model of the supply chain finance with supplier-led. Then the study use two typesof financing models to do numerical simulation. This model helps us to give solutions forsupply chain node companies under financial constraint. In the situation of supply chainfinancing, no matter node company chooses centralized or decentralized decision-making, supply chain finance with supplier-led is more prefer. Meanwhile, in terms of the profit for thesupply chain, supply chain finance brings more benefits. This study hopes to give suggestionsfor node companies with financial constrains and also makes sense for development ofChinese supply chain companies.