Profit Model Analysis Of Suning Supply Chain Finance

The economic structure has become more rational since the end of the 20th century,economic entities have become increasingly diversified,small and medium-sized enterprises(SMEs)have become an important part of the national economy.At the same time,the e-commerce industry has developed steadily.The e-commerce companies have formed a relatively stable supply chain business model with suppliers,distributors,and logistics companies.However,the traditional supply chain model has exposed many problems during the operation process,SME financing is constrained,core enterprise development enters bottleneck period,etc.To solve these problems,e-commerce giants including Suning.com(Suning)purchase innovative supply chain financial model and build a supply chain financial system relying on their data asset,information technology advantages.E-commerce company serves as core companies and fund providers which makes it unique in the new supply chain finance model.In this paper,the profitable effect for each participating entity and the risk analysis were studied.Further study on the innovation on Suning supply chain profit model was addressed,risk prevention countermeasures were provided according to the profit effect.Results show that:Firstly,the model innovation of supply chain finance plays an active role in expanding the sales volume,increasing the sales profit and adhesion with the cooperative merchants.It is of great significance for fund providers to explore new types of business and raise the overall interest income level,and of great significance for SMEs to reduce financing costs,expand financing scale,and ease financing constraints.Secondly,supply chain financial system still faces credit,operational,market risks.Using risk matrix model to quantitatively evaluate risk and find targeted countermeasures will help reduce the overall risk of the supply chain financial system.Thirdly,the paper puts forward constructive suggestions for other e-commerce companies,and points out that "supply chain+block chain+platformization" is the development orientation of future supply chain finance.It utilizes the characteristics of blockchain technology data reliability,multi-party trust,and convenience of joining nodes.Strengthening the security of supply chain finance is the general trend.It is an irresistible trend to strengthen the security of supply chain finance by using the characteristics of block chain technology data,multi-party trust,and convenience of joining nodes.This paper analyzes the supply chain financial model of the e-commerce industry,reveals the inner mechanism of profit and risk in the new operation process,and grasps the future development trend of supply chain finance.It also emphasizes that the supply chain finance brings profits and opportunities to enterprises,but also faces risks and challenges.It provides reference for Suning and other e-commerce companies in the innovation of supply chain financial model.