Financial Logistics Research Articles

Measuring supply chain finance: a study of scale development and validation in the emerging market context

PurposeFinancing remains a serious concern for firms and is considered the main hurdle in the growth and development of small and medium enterprises (SMEs). Recently, a new stream of financing (SCF; supply chain finance) has emerged to meet the financing issues of SMEs. Therefore, measuring SCF is essential to support SMEs’ operations. This study aims to develop and validate the SCF scale based on extant literature.Design/methodology/approachUsing a mixed-method approach, this study recruited different samples of SME entrepreneurs to confirm the internal consistency, assess construct validity and check the item structure of the SCF scale in AMOS.FindingsThe outcomes of confirmatory factor analysis demonstrated the six factors of SCF (inventory financing, working capital optimization, reverse financing, fixed assets financing, logistics financing and order cycle financing) spread over 21 items. An interitem solid structure of the SCF scale offers invaluable contributions to the supply chain management literature.Practical implicationsThis research supports SME entrepreneurs to obtain secure financing at the best cost, mitigating the risk of default, supporting the buyers’ payment terms, providing early payment to suppliers and strengthening the firm’s value chains. SMEs can obtain financing per their requirements to support their operational business processes. Moreover, SMEs can plan, manage and control finance-related transactional activities by correctly identifying financing solutions.Originality/valueThe present study contributes to SCM literature by developing and validating the SCF scale. To the best of the author’s knowledge, this is the first study that redefined SCF and identified its six dimensions.

Third‐party logistics firm's technology investment and financing options in platform‐based supply chain with 4PL service

AbstractIn practice, capital‐constrained third‐party logistics (3PL) firms usually obtain bank financing (BF) to invest in logistics technology to enhance the consumer shopping experience. The emergence of financial innovation has prompted the adoption of alternative financing modes by 3PLs, including e‐commerce platform financing (EPF) and fourth‐party logistics financing (4PF). To clarify the differences among the three financing modes at the operational management level, we develop a Stackelberg game model to capture the strategic interactions between the 3PL and creditors. We examine a platform‐based supply chain where a manufacturer sells products through an e‐commerce platform to consumers, with the logistics services for the supply chain provided by the 3PL and fourth‐party logistics (4PL) firms. The analysis results reveal that the equilibrium interest rates under EPF and 4PF share a similar pattern regarding the logistics service cost coefficient, the commission rate, and the 4PL service fee. The difference is that under EPF (4PF), the logistics service level increases in the commission rate (4PL service fee) but decreases under the other financing strategy. Furthermore, the 3PL is inclined to invest in logistics technology only when the fixed investment cost is low, and these financing modes are complementary rather than alternative. The 3PL and manufacturer can benefit from 4PF (BF) when the logistics service cost coefficient is large and the market size is small (large); otherwise, EPF can enhance their profits. We also find that when the opportunity costs of capital are homogeneous, both the 4PL and the platform are consistently willing to act as financiers themselves. However, when considering heterogeneity in the opportunity costs of capital, they may be reluctant to provide financing. Each financing mode may achieve Pareto improvements under specific conditions. Finally, we also analyze the impact of technology R&D risks and endogenous 4PL service fee, yielding some valuable insights.

Logistics financial risk assessment based on decision tree algorithm model

In order to solve the financial risk problem of small and medium-sized logistics enterprises, a log algorithm is used to measure the financial risk of logistics. Combined with the actual situation of logistics finance, through the analysis of randomly selected logistics finance data, quantitatively extract important financial risk indicators, build a credit rating model based on decision tree C4.5 algorithm, and conduct empirical research on the model. The empirical results show that the quantitative financial risk indicator extraction method combined with decision tree C4.5 algorithm credit rating model has high accuracy in the evaluation of logistics finance risk. Therefore, based on the existing logistics financial risk assessment methods and models, the decision tree analysis technology is applied to analyze and make decisions on the credit status of credit applicants, and select companies with good credit, so as to reduce the financial risk of logistics enterprises and improve the efficiency of financial risk management.

The Study on the Development Countermeasures of Logistics Finance in Ningbo City Based on the SWOT Analysis

The Study on the Development Countermeasures of Logistics Finance in Ningbo City Based on the SWOT Analysis

Analysis of Blockchain-based Cold Chain Logistics Financial Business Model

Analysis of Blockchain-based Cold Chain Logistics Financial Business Model

Optimal financing and sales channel strategies for a capital-constrained supply chain with different risk preferences

In a volatile market environment, it is an important issue whether a manufacturer with capital constraints should establish an online direct sales channel to encroach the retail market. In addition to loans from financial institutions, third-party logistics (3PL) financing provides an alternative way for the manufacturer to solve its capital difficulties. Considering that the manufacturer exhibits diversified risk preferences for uncertain demand, we build an analytical model to examine the financing and sales channel decisions of the manufacturer, retailer and 3PL. Further, the impacts of differentiated freight rates and portfolio financing on key decisions are explored. Our results mainly contribute to the literature in two aspects: In terms of financing strategies, the 3PL tends to conduct financial business at a lower interest rate under a single-channel strategy, but a reduction in the 3PL interest rate prevents the manufacturer from adopting 3PL financing. In contrast, a larger financing need promotes the 3PL to offer a loan with a higher interest rate under a dual-channel strategy, which in turn drives the manufacturer to enhance its preference for bank financing. 3PL financing is always more conducive to improving the retailer’s profit. In terms of sales strategies, a smaller establishment cost of the online channel or greater risk tolerance encourages the manufacturer to implement the dual-channel strategy, while lower price competition and online channel preference prevent the manufacturer from encroaching so that it only employs a single offline channel for sales. An increase in price competition between channels encourages the manufacturer to establish the online channel, and manufacturer encroachment weakens the retailer’s profit. Furthermore, differentiated freight rates reduces the participants’ propensity for 3PL financing, while portfolio financing enhances the manufacturer’s motivation to develop the online sales channel.

Temporal Tampering and “The Case for Reparations”

Abstract This essay examines Ta-Nehisi Coates's article “The Case for Reparations” to illuminate how he uses inventive temporal strategies to transform the grounds of the reparations debate. I argue, Coates engages in a process of temporal tampering that involves meddling with dominant temporal structures (conceptions of time that serve white supremacy) to accommodate the excessiveness of anti-Black violence. Through tactics of timeline jumping and a rhetoric of repair, Coates draws on articulations of time as a resource to sabotage anti-reparations temporalities. Instead of approaching the reparations debate through stale discursive entry points, such as financial logistics, I reveal how Coates draws upon conceptions of time to reposition reparations as a mode of worldbuilding and social transformation.

Midwifery Practice Leaders' Experiences of Practice Changes Early in the COVID-19 Pandemic: A Qualitative Exploration.

The coronavirus disease 2019 (COVID-19) pandemic generated considerable upheaval in all sectors of the US health care system, including maternity care. We focused this inquiry on midwifery practice leaders' experiences and perspectives on changes that occurred in their practices early in the pandemic. This was a qualitative descriptive study using thematic analysis. The data were responses to an open-ended question in a survey of pandemic-related employment and clinical practice changes. Findings are presented from a constructivist perspective, describing the experiences and perspectives of a group of US midwifery practice leaders during the initial phase of the COVID-19 pandemic. Two main themes emerged from the analysis: demands on midwives and driving forces. Demands on midwives were 3-fold: clients' needs, modification of care, and midwives' needs. These encompassed the psychological, physical, and emotional toll that caring for women during the pandemic placed on midwives. Driving forces were those entities that spurred and directed change and included regulations, institutions, financial logistics, and team dynamics. Survey respondents in community (home and birth center) practices reported substantial increases in inquiries and client volume, and many respondents expressed concern about withdrawal of students from clinical placements. Midwifery practices experienced profound changes in their work environments during the COVID-19 pandemic, with both positive and negative characteristics. These challenges in providing birth care were similar to those reported in other countries. Results indicated existing guidance for maternity care during emergencies did not meet clients' needs. Coordinated planning for maternity care in future prolonged health emergencies should incorporate best practices and include midwives in the process.

Overview of Logistics Finance Theories

Logistics finance is of great significance in helping companies bail out. Not only that, different models of logistics financial business types also have different impacts on business risks. This article starts from logistics finance, expounds its role and significance in the modern economic system, subdivides logistics financial business into three aspects: logistics settlement finance, logistics warehouse receipt finance and logistics credit finance, and analyzes their role in supply chain management and the key role in the financial field, and further in-depth research on the risks faced by the logistics financial field. It is hoped to provide in-depth insights to practitioners and decision-makers in the field of logistics finance and help them better understand and manage the risks associated with it to ensure the sustainable development and successful implementation of logistics finance business.

Blockchain-enabled digital assets tokenization for cyber-physical traceability in E-commerce logistics financing

E-commerce logistics financing drives growth in small and medium-sized logistics companies. Despite the popularity, its adoption faces vexing challenges in supply chains, such as (i) asymmetry arising from information silos, (ii) hidden centrality in existing information technology solutions, and (iii) opaqueness in information ownership. Blockchain technology, with its native constructs, such as shared ledger, smart contracts, and tokens, is deemed promising to alleviate these concerns. Hence, this study introduces a blockchain-enabled cyber-physical traceability system for logistics financing based on digital asset tokenization. The tokenization of digital assets brings visibility and traceability into the supply chain’s cyber (information flow) and physical (logistics flow) transactions. Subsequently, we (i) introduce the design and implementation of the proposed traceability system and (ii) demonstrate the application of the proposed system in logistics financing. Some of the resulting implications include: (i) The information sharing through blockchain technology brings resolution into the operations in the supply chain for logistics financing. (ii) The system minimizes the required upfront expenditure and provides flexible access to computing resources to promote the system’s adoption by the stakeholders.

Design and value analysis of the blockchain-based port logistics financial platform

ABSTRACT Time-consuming ocean transportation for international trades requires enterprises to advance payments for goods, which can be fatal for small and medium enterprises with insufficient self-owned capital. Logistics finance is an effective solution for tackling this problem. However, traditional logistics finance has long been plagued by information asymmetry, tremendous paperwork, and long financing cycles. As a distributed database with characteristics of transparency, traceability, and immutability, blockchain technology shows good potential in addressing pain points on traditional logistics financing platforms. This paper focuses on the operational mechanism and value analysis of the blockchain-based port logistics finance platform. The conceptual architecture of the blockchain-based port logistics finance platform is constructed, and a value analysis model based on the Newsboy Model is established for quantitatively analysing the platform’s value. The results revealed that the introduction of the blockchain into port logistics financing can significantly improve small to medium-sized enterprises’ profitability by providing reliable financing channels. The results also indicate that participants’ profit on the blockchain-based platform may be influenced by the speed of market expansion, initial capital size, and financing cost. This paper also discusses theoretical and managerial implications by providing insights into the participants’ decision-making on the platform under different constraints.

Optimization of agricultural production management based on financial logistics, system analysis and statistical data modeling

Optimization of agricultural production management based on financial logistics, system analysis and statistical data modeling

An analysis of logistics financing prospects in Singapore

Singapore is well-positioned as a global hub for logistics and supply chain management. Singapore’s modern logistics industry has five main characteristics: high efficiency, robust technology, strong professionalism, high service concentration and strength. Singapore is a foreign trade-driven economic model. With the prosperity of cross-border trade, companies in the logistics industry in Singapore seek diversification and expansion of supply chain technology and logistics finance. This paper mainly analyses the advantages of Singapore’s development of the logistics industry and the promotion effect of Singapore’s growth in the financial field on logistics industry financing. Factors such as the Internet of Things, blockchain, intelligent management, talent cultivation and policy support are enormous drivers for developing logistics financing in Singapore. Among them, the most representative and promising is the blockchain platform, which provides technical support for the Internet of everything, improves the security of multi-agent cooperation, and expands the scope of credit transmission. Although there are still some risks in developing logistics financing in Singapore, as a potent combination of the financial and logistics industries, logistics financing has a bright prospect.

Research on Logistics Finance and Supply Chain Finance Countermeasures of Guangxi Aluminum Industry

This paper first expounds the characteristics of the aluminum industry and the prospect of the development of the aluminum industry in Guangxi. According to the characteristics of the products, it sorts out the types of pledged goods in each link of the aluminum industry, and analyses the advantages and disadvantages of Guangxi aluminum industry logistics finance and supply chain finance based on the current situation. Then it analyses the intervention points and difficulties of Guangxi aluminum industry logistics finance and supply chain finance business, with specific types of business examples to explain, and analyses the risk points and control measures involved. Finally, it puts forward strategic suggestions for the development of logistics finance and supply chain finance in Guangxi aluminum industry.

Retracted: Construction of a Supply Chain Financial Logistics Supervision System Based on Internet of Things Technology

Retracted: Construction of a Supply Chain Financial Logistics Supervision System Based on Internet of Things Technology

Research on Credit Risk of Logistics Finance Based on Four-party Game Model

In the context of the Covid pandemic, which has a significant impact on the global economy and has brought more attention to the improvement and operation of the economic and financial system, the logistics industry is facing great chal-lenges in this pandemic, and in this context, the concept of logistics finance is more well-known. Logistics finance business has been carried out rapidly be-cause of its ability to effectively solve the problem of difficult capital turnover and financing for SMEs. In recent years, the government has introduced a series of economic incentives, logistics finance has played a deep role in regulating the flow of funds and improving the efficiency of capital operation, building a bridge connecting banks, logistics enterprises and financing enterprises to cooperate closely and achieving the goal of win-win situation for all parties. Although lo-gistics finance plays an important role in the process of enterprise financing and generates significant benefits, it also faces potential risks in the process of devel-opment, so the establishment of logistics finance risk prevention system has be-come an urgent requirement for the sustainable development of logistics enter-prises, banks and financing enterprises. Based on the full analysis of credit risk in logistics finance, this paper establishes a game model among logistics finance participants to find out various factors affecting the risk and provide a theoretical basis for the control of risk.

Supply chain financial logistics supervision system based on blockchain technology

Supply chain financial logistics supervision system based on blockchain technology

Logistics Finance Collaborative Development Model Based on Machine Learning.

In the context of rapid social development, a logistics financial model that can meet the financing needs of small and medium-sized enterprises and has high returns is widely used in all aspects of the logistics financial industry. Logistics finance is a new financing model that can effectively integrate logistics enterprises, financial companies, and financing institutions to achieve mutual benefit and win-win results. The uncertainty of financial information, the motivation of each business service object to pursue high returns in a short period of time, and the inadequate risk preuniversal conditions have led to credit risks in the development of logistics financial services. Promoting the close integration of improved neural network algorithms based on machine learning and logistics financial financing models is inseparable from the active cooperation of all aspects, the trust of various business service objects, and the construction of logistics financial information platforms. Based on machine learning, this paper analyzes and models the collaborative development of logistics finance, analyzes the original data, and constructs sample characteristics. Due to the small amount of information in part of the sample features, this causes problems such as overfitting in the process of model building. Therefore, we designed a new feature selection based on Pearson correlation coefficient and PCA. Method. Using this algorithm for feature selection, an integrated learning method is proposed. In order to solve the shortcomings of traditional neural network logistics algorithms, a neural network-based noncomplete vehicle path optimization mining model is proposed. By weighting the time domain length and spatial probability of logistics finance, the stable state of the neural network is restricted. Simulation results show that this method can effectively improve logistics efficiency and maximize the economic value of the transportation process.

Strategic introduction of logistics retail and finance under competition and channel spillover

Some novel operation modes of third-party logistics providers (3PLs) have been arising. 3PLs run retail businesses (i.e., logistics retail) and provide financial assistance to capital-constrained product suppliers (i.e., logistics finance). However, introducing logistics retail brings the effects of competition and channel spillover, which further affect logistics finance. This intrinsic connection raises key questions about whether and under what conditions the 3PL firm should cooperate with the supplier by integrating logistics services, retail, and financing. In this paper, we consider four scenarios to analyze this problem: logistics service, logistics finance, logistics retail, and logistics retail–finance. Interestingly, compared with the former two scenarios, the retail competition existing in the latter two scenarios will not consistently lower down sales prices and raise sales quantities, especially when the spillover effect, either positive or negative, is significant. Moreover, we find that the 3PL firm prefers the logistics retail–finance scenario in most cases because the intersection of selling and financing roles enables the 3PL firm to increase financing income by affecting two parties’ sales margins (diversion effect). However, the supplier prefers the logistics retail–finance scenario when the spillover effect is relatively small even negative and the unit logistics cost is relatively lower. Otherwise, with the increasing positive spillover effect, the supplier prefers the logistics retail scenario because the enhanced diversion effect enlarges competition losses. Finally, we find that a lower 3PL firm’s interest rate facilitates achieving a win-win result, especially when the spillover effect becomes negative.

CONCEPTUAL APPROACHES TO THE STUDY OF THE FINANCIAL POTENTIAL OF SUPPLY CHAINS

The development of the conceptual apparatus of the theory of supply chain management involves conceptual approaches to the study of the financial potential of supply chains and includes the formulation of the author's definition of "the potential of financial flows of supply chains" as a set of realized and unrealized for objective reasons financial capabilities of participants in these chains, the distinctive feature of which is the elimination of subjective factors of the formation of such potential and the assertion of opportunities to manage them. The introduction of such an author's interpretation into scientific circulation makes it possible to develop and adapt many theoretical provisions to the modern conditions of financial logistics and in many ways solve the problem of effective supply chain management.