Research On Short-time Financing Program Of Construction Machinery Manufacturer A

With economic globalization, supply chain management service become more and more prominent. A good operation of enterprise is a good operation of information flow, physical flow and financial flow. Current research on supply chain management service focuses on physical flow and information flow. Financial flow is also very important for supply chain management. As a combination of supply chain services and financial services, supply chain finance can energize operating cash flow for companies to promote business information flow, physical flow and financial flow to accelerate integration.Supply chain finance is an enterprise using the supply chain upstream and downstream enterprises financing. There are accounts receivable financing, bonded warehouse financing and inventory financing.A company is a global leader in the construction machinery industry, products related to concrete, road construction, excavation, pile driving, lifting, wind power, ports and other equipment. Due to the existence of a strong upstream suppliers and downstream consumers, A company have a heavy big cash flow problem.For the financing needs of A construction machinery enterprises, choose the inventory financing for the short-time financing. And run the program conducted a feasibility analysis. We carried out the work from the following respects:First, based on the shortage of cash and the backlog of inventory, take advantage of the inventory to finance is a good choice for A company. There are two ways for A company to financing in short time:inventory mortgage financing and inventory pledge financing. Based on the feasibility analysis of the two methods, choose the latter one for A’s option. Besides, A has a lot of bank loan, so it’s difficult for A to financing from bank. The inventory unified credit model in which company get the money from the 3PL logistics company is the best choice for A company. conducted a screening program and explain why choose inventory pledge financing options.Secondly, for the corporate inventory financing program, the key part is the 3PL logistics company. In order to clarify the feasibility of 3PL logistics company joining the program, a model is built to analyze the expected revenue impact of program put on 3PL and A.Thirdly, for the inventory unified credit model, in one hand, analyze the best expected income for a certain inventory to maximize cash flow. In another hand,for the fixed cash flow needs, how to make financing decisions and what the best solution is.