مقاله انگلیسی اثرات تأمین مالی موجودی در ترانزیت بر زنجیره تأمین محدود سرمایه
Highlights
Abstract
Keywords
1. Introduction
2. Literature Review
3. Model Framework
4. Effect of In-transit Inventory Financing on the Partially Capital-constrained Supply Chain
5. Effect of In-transit Inventory Financing on the Capital-constrained Supply Chain
6. Extended Analysis
7. Numerical Analysis
8. Conclusions
Appendix. Supplementary materials
References
Abstract
In-transit inventory financing is gaining popularity as an alternative way to access financing. However, compared with other financing means such as trade credit and bank loans, the effects on the supply chain of a third-party logistics provider (TPL) providing in-transit inventory financing are seldom investigated. This study adopts a channel competition model to examine the impact of such financing on the supply chain. Through comparative analysis with conventional financing approaches, we find that the availability of in-transit inventory financing allows retailers to take advantage of a lower financing fee for trade credit, even when the demand for trade credit decreases. In addition, the TPL-provided financing service can lead to a reduction in financing fee for both trade credit and in-transit inventory financing when both the supplier and retailers have financing demand or the TPL is subject to a high degree of risk aversion. Finally, when the TPL has the first-mover advantage in setting its financing fee, the supplier with a financing demand pays a lower financing fee to the TPL due to the decreased demand for in-transit inventory financing. In this case, we find that the low logistics cost, the low unit product price without trade credit and a high financing ratio can make in-transit inventory financing more attractive than trade credit. Our results have important implications for the implementation of in-transit inventory financing in supply chains.
1. Introduction
Trade credit has been used widely as a financing scheme. It is particularly useful for small and medium-sized enterprises (SMEs) without an established credit history who have difficulty accessing loans from traditional financial institutions (Yang and Birge, 2018). According to the Federal Reserve Board (2019), trade credit in the United States (US) increased by 17.77% in 2018, amounting to 15.35% of total assets on the aggregated balance sheets of non-financial businesses. In recent years, third-party logistics providers (TPLs), such as UPS, SF Express and Eternal Asia, have been cultivating their financing activities by providing in-transit inventory financing—a financing service facilitated by their superior information on supply chain transactions and strong cash reserves. Through the use of in-transit inventory financing, retailers can obtain external financing more easily and receive price discounts from suppliers. For example, WD Music, a leading US retailer of guitar parts, was able to order components from its suppliers and expand its manufacturing capacity by relying on UPS’s financing service (UPS, 2018). Another example is the financing service from SF Express, through which retailers pay the supplier at a discounted wholesale price, while SF Express controls the products until the retailers sell them off and repay the loan plus a financing fee.