Research On Supply Chain Finance Application In Company B SCM Operation

As the economy has taken off,SMEs have played an increasingly important role in solving employment,increasing taxes and increasing economic benefits.The financing problem that troubled the development of SMEs has not been fundamentally resolved.Funds are the blood of an enterprise.SMEs can't do without the support of funds from establishment,growth to development and growth,and SMEs are inherently weak,with a high probability of bankruptcy and failure,low asset quality,weak profitability,and unstable credit status,both restricting its own capital growth and blocking external financing channels,the lack of funds fundamentally hinders the long-term development of SMEs.With the rapid development of the logistics industry and financial innovation,the concept of supply chain finance has been proposed at home and abroad,and it has been gradually applied to corporate practice.It is regarded as a new way to solve the problem of corporate entity financing.Company B is the leading Company in the lighting industry.The technical solutions for lighting products are relatively transparent,the industry concentration is not high,and it is in a state of full competition.The cost control and innovation capabilities of upstream raw material suppliers directly affect the company's supply chain stability and competitiveness.The company's main sales channel is more than40,000 stores dealer system;the company's business growth depends on the dealers' business expansion ability.With rapid business development and product iterations,companies in Company B's supply chain have encountered difficulties in financing to varying degrees and high financing costs.Due to insufficient capital turnover affecting delivery,technological innovation,new business development,etc.,how to solve the financing problems of the company 's upstream suppliers,ensure stable supply,continuous product innovation,and achieve relative cost advantages,how to assist downstream channel dealers to accelerate business turnover,achieving healthy and stable sales growth has been the company's primary problem to be solved urgently.Through the combination of theory and practice,deeply deconstructs the bottleneck problem in the supply chain structure of company B,classifies theupstream suppliers and downstream distributors of company B's supply chain according to the "Pareto principle",and establishes it through the corporate financing risk "5C" credit risk assessment model,and apply the model to the company's upstream suppliers and downstream distributors to conduct risk assessment to find the appropriate financing target.After fully analyzing the financing bottleneck problems of upstream and downstream companies in Company B's supply chain,they respectively designed and implemented accounts receivable financing for upstream suppliers and inventory pledge financing for downstream distributors,which solved the funds in Company B's supply chain system.Bottleneck problem.For the first time in Company B,the information flow,logistics,capital flow and credit business of supply chain management were combined to achieve resource integration.Secondly,it also realized the company B 's upstream supplier management,business model innovation and management reform with downstream distributor management.The research on supply chain finance application in Company B SCM operation also provides a case study for SMEs,especially those in the same industry,which also have the bottleneck of financing.