Design And Evaluation Of Z Company's Supply Chain Finance Solution

Although the prospect of auto parts after market is considered to be optimistic,the sales model of the industry is too old.On the one hand,manufacturers rely too much on downstream buyers,resulting in slow capital recovery and poor liquidity.On the other hand,in order to reduce costs and increase their competitiveness,brand owners are constantly squeezing the profits of upstream suppliers which increasing the operating costs of suppliers.These status quos make it difficult for upstream and downstream companies in the auto parts supply chain to establish the necessary trust and bury potential risks for the supply chain management.Therefore,the auto parts industry needs to solve these realities.This paper is mainly to design supply chain financial solution for company Z.The article uses literature,theoretical analysis,comparative research,model validation and quantitative research.The solution was designed,and the effect after the implementation of supply chain finance was verified.The conclusion of this paper is that supply chain financial can enable Z company and its upstream and downstream related enterprises to strengthen their relationships and enhance the competitiveness of the whole supply chain.The model demonstrates and quantifies the effect of supply chain finance on the reduction of cash flow cycle and the increase of EVA.