Risk Management Of Supply Chain Financing For R Company

As the selected object of study,R Company,well known in the country,belongs to the engineering materials manufacturing trade.The partners from the upstream and downstream in the supply chain are mostly constituted by small and medium sized enterprises(SME)with tight budgets.Due to the high quantity fund flows in this trade,the suppliers and distributors always come to the difficulty of financing.For survival and keeping operation,they have to borrow with high interest,increasing the products' price or trade with intermediate traders,which damage the interests of R Company significantly.The supply chain financing service conducted by R Company with banks or other financial institutions can resolve the problems and enhance the supply chain's competitive power.How to put it into practice and control the relative risks are the key issue of R Company and this dissertation.The research object is to design the supply chain financing project and methods of risk management for R Company which could help the suppliers and distributors solve the difficulty of financing.The research includes how to establish a more reasonable pattern for the engineering materials manufacturing trade.It provides methods on risk identification and decision-making to generate optimal expectations.The research methods include qualitative analysis,quantitative analysis and case study.The research results show that the supply chain financing can help R Company solve the supply chain's problems such as instability,lots of intermediate traders and high costs.Meanwhile,R Company can control the risk by establishing systems on risk identification,assessment and disposition for improving management.Comparing to the current accounting settlement model,the implementation of the supply chain financing project will help R Company to obtain a higher risk return.This dissertation will give theoretical direction for the experimental unit of R Company and other related enterprises will also get reference value from it.