Research On The Application Of Supply Chain Finance In Tobacco Industry

The tobacco industry is a pillar industry of the Chinese economy.The tobacco industry has been developed in China for many years.At present,the entire industry has formed a complete industrial chain in China.At the same time,it has a large amount of capital demand,rapid capital turnover,and numerous individual participants.Other characteristics,such as strong financing needs,is the new target that is most suitable for the development of supply chain finance.Compared with the traditional financing methods,the development of supply chain finance has broadened the financing channels of tobacco-related supporting participants,and at the same time,taking advantage of the characteristics of the tobacco industry itself,it can not only effectively solve SMEs and cigarettes in the supply chain.It is difficult for sellers and tobacco growers to raise funds,and it reduces the credit risk of banks.Starting from the majority of SMEs,retailers and tobacco farmers in the supply chain,the use of supply chain financial products,around the core enterprise development,to achieve the purpose of promoting the financing development of the entire supply chain participants.Through the research on supply chain finance theory,using case analysis method,literature research method and case analysis method,the research on tobacco industry financial chain products and application,taking H Bank’s current business as an example,describes the business management in detail.Run the process while analyzing the strengths and weaknesses of the product.Taking H Bank to promote the supply chain financial products business as an example,it describes in detail the entire operation process from business application processing to business settlement.It is intended to reflect the shortcomings of H Bank’s current supply chain financial products through research on products.Corresponding suggestions for improvement.After detailed analysis,the conclusion is that H Bank’s supply chain financial products have insufficient institutional outlets,insufficient staffing,inadequate internal system construction,and certain potential risks of products,which affects H Bank’s supply chain finance.The product is quickly promoted.Therefore,it is very necessary to do a good job in improving and perfecting the financial products of H Bank’s supply chain.It is of great significance for the rapid and steady development of H Bank’s business.This paper puts forward three major suggestions.First,improve the overall business operation capability;Second,improve internal system construction;Third,preventive measures for potential risks.In general,H Bank is backed by the major shareholder of tobacco companies,and according to the particularity of the tobacco industry,it has developed supply chain financial products that meet the needs of H Bank and the interests of tobacco supply chain participants.Through the rapid promotion of supply chain financial products,it has brought convenient and affordable financing products to core enterprises and supply chain participants.It has also improved H Bank’s own business structure and created new profit growth points.