Modern Logistics Financial Services Innovation Finance Logistics Yu Ping School of Economics, Wuhan University of Technology, P.R.China,430070 Abstract: The development of modern logistics is indispensable to financial services, however, the current slow development of domestic financial services, which to some extent affected the development of modern logistics. The paper puts forward the concept and background of finance logistics, discusses some kinds of operational modes and analyzes the risk of finance logistics. Key Words: Modern logistics; Finance logistics; Service innovation 1 Introduction On the one hand, enterprises can not make the logistics for the clients, especially small and medium enterprises, providing comprehensive integrated logistics and financial services, on the other hand makes enterprise logistics liquidity rate is low, raw materials, semi-finished products or not smooth cargo flow, affected the operational efficiency of logistics enterprises. I believe that the combination of financial services and logistics services operating model innovation is the third-party logistics companies, financial institutions (banks, etc.) or related enterprises in the fierce market competition to come to the fore one of the main ways. Accordingly, I proposed a modern logistics innovative financial services financial services (Finance denotes), research topics. The study, to third-party logistics enterprises, financial institutions (banks) to make innovations in business, and the search for new profit growth point, provides new ideas and methods of implementation, with some important theoretical and practical significance. 2 Financial logistics concept Financial Logistics is combined product of logistics services and financial services. In my view, the financial logistics, including financial services functional logistics services, the main means: in the supply chain, the third-party logistics enterprises with an integrated financial and logistics of innovative services, its main services include: logistics, flow processing, financing, evaluation, monitoring, asset management, financial advice, etc. Financial logistics not only offer our customers high-quality and high-value-added logistics and processing services, but also improve the overall supply chain performance and business customers, and capital efficiency for clients of the financial services directly or indirectly. Manufacturers Retailers Customers The third party logistics enterprises The third party logistics enterprises Figure 1 Financial logistics system Financial logistics system in figure l. Figure l can see from the visual, the financial supply chain logistics is innovative financial services products, the financial logistics providers (such as third party 600
logistics enterprises) through their own or their close collaboration with the financial institutions for the provision of logistics and supply chain enterprises in the financial-services integration. 3 The background and the development of financial logistics 3.1 The background of financial logistics 3.1.1 Third party logistics services revolution Financial logistics is the integration of the logistics and financial products, not only to enhance its third party logistics business servicing capacity, the operating profit, but to help enterprises expand financing channels, reduce financing costs and improve efficiency in the use of capital. Financial logistics services will open the first domestic logistics industry is a revolutionary third-party logistics services. 3.1.2 SME financing difficulties In China, there is an inadequate credit system for SMEs, therefore SMEs face the poor financing channels and the pressure of production business funds. Financial logistics services can effectively support SMEs financing. In addition, the financial logistics enterprises can make an inventory of finished products and raw materials temporarily idle funds occupation, and optimize enterprise resources. 3.1.3 Supply chain win-win objectives For modern third-party logistics enterprises, the financial logistics enterprise integration can improve service levels, enhance the competitiveness of the enterprises, and improve enterprise business size and increase high value-added services, and expand the enterprise's profits. For supply chain enterprises, the financial logistics enterprises can reduce financing costs, broaden the financing channels for enterprises; Enterprises can reduce the raw materials, semi-finished products and capital occupancy rate, and improve enterprise capital utilization, and achieve optimal deployment of capital; Reduces procurement costs or expand sales size, and improve enterprise sales profits. For financial institutions, the financial logistics services can help financial institutions to expand the size of the loan, reducing credit risk, and even can help financial institutions dispose of bad assets. 3.1.4 to strengthen innovation The financial institutions face increasing competition for an edge in competition, financial institutions, such as banks, the ongoing operational innovation, and this prompted the birth of the financial logistics. Financial logistics can help banks to attract stability customers, expand the operation scale of the banking and enhance the competitiveness of the banks; it can help solve logistics bottleneck that bank loans face pledge - a pledge from storage and regulation; Bank lending operations pledge can help resolve the pledge from banks face assessment, asset disposal and other services. 3.2 The condition of financial logistics Financial logistics development is in the origin of goods financing. Financial and logistics integration can be traced back to 2400 BC, when the U.S. on a regional cereal Sorbs glass warehouse receipt. And the British first appeared in the circulation of banknotes is to cashing Silvermine warehouse receipt. 3.2.1 Financial logistics operations in developed countries Internationally, the most comprehensive system of financial regulation is in the North American logistics (U.S. and Canada) and the Philippines, and other places. In the United States, for example, the financial logistics of the main business model is one of the agricultural warehouse receipt pledge. Warehouse receipt can serve as collateral for bank loans, and also to the trade as a means of payment for circulation. U.S. government financial logistics system is based. Back in 1916, the United States enacted the U.S. warehouse storage bill (U.S. Warehousing Act of 1916), and thus established a pledge on the warehouse receipt system rules. This system was not only a family farm one of the principal means of financing, but also to improve the overall efficiency of the agricultural marketing system, lowering operating costs. 3.2.2 Financial logistics operations in developing countries Compared with developed countries, developing countries, the financial logistics operations began later, the operational system is not perfect. Africa trade liberalization had long attracted many foreign 601
companies to enter the local business as a review. These companies to banks, borrowers and pledge manager for the main, established the Tripartite Collateral Management Agreement (CMA), to review the company warehouse operators as often as a pledge manager positions. Through the agreement, inventory, the borrower must obtain credit in the banking and financing opportunities. Such warehouse receipt financed directly to the bank rather than opening borrowers, and the warehouse receipt can not flow transfer. In African countries, Zambia is the more successful examples of the financial logistics system. Zambia not to use the North American system of government based model, but in natural resources Association (Natural Resource Institute), with the help of government created and maintained a certain distance, from the self-regulatory body of a government of Zambia agricultural products agents (the Zambian Agricultural Commodity Agency Ltd. ). The company developed the system with reference to the financial logistics system development and management, while avoiding government intervention and thus more responsive to the political and economic environment of African countries. 3.2.3 The development of China's financial logistics Agents are more foreign financial services financial institutions, and agents of the domestic financial logistics services primarily third-party logistics companies. Financial services are accompanied by modern logistics enterprises and the third-party logistics, financial services, logistics, modern third-party logistics business more complex, in addition to providing modern logistics services, but also in cooperation with financial institutions to provide some financial services. Domestic scholars on financial logistics related areas of research are the material bank, coalition positions, the study, but these studies mainly based on traditional financial services to logistics, not from the supply chain, logistics development perspective corresponding financial services. For example, Luo Qi and Zhu, Daoli (2002) noted that logistics enterprises expand the concept and mode of operation of warehouse services explored; Ren Wenchao(1998) explored the use of materials Bank settlement of the concept of chain enterprises. In domestic practice, the Chinese shipping group from 1999 onwards part of the logistics involved in financial operations. China to finance transportation logistics group has brought new development opportunities, the company has recently concluded a partial financial logistics business model, and in all groups promoting subsidiaries. 4 Financial logistics operation model According to the author of financial institutions (such as banks) in varying degrees, the financial logistics includes assets circulation model, capital flow model and integrated asset model. The selection of these three models of several typical operation programmed is introduced, the practice of trying to give enterprise activities provide a reference. 4.1 Assets circulation models Programme 1: Alternative procurement The programme was replaced by logistics companies borrowing enterprises to the procurement of goods and suppliers of goods obtained title, and then on the basis of the proportion of margin borrowing enterprises to release the goods. in the procurement process, usually issued to vendors acceptances and commercial enterprises designated by the contents of the shipment in accordance with the loan signing of purchase and sales contracts. also are responsible for the transport of goods, storage, auction cash flow and to assist clients processing and marketing. Programme 2: Letters of credit guarantees Foreign trade companies Purchasers In this model, (l) logistics enterprises and foreign trade companies pay the purchase price credit terms to suppliers, the indirect financing to purchasers; (2) a supplier of goods sent to the warehouse 602
financing warehouse supervision, control flows of goods warehouse ownership; (3) According margin ratio, by order of the goods transferred to the purchasers. 4.2 Capital flow model Programme 3: Warehouse receipt pledge financing model. The simplest warehouse receipt financing by borrowing enterprises, financial institutions and logistics companies in a tripartite agreement, the borrowing enterprises in the bonded goods stored in warehouses, logistics companies, logistics companies and then on the warehouse receipts issued to banks for loans. According to the value and quality from banks other relevant factors to provide a certain proportion of loans. Goods do not necessarily have to pledge by borrowing enterprises may be suppliers or logistics companies. Programme 4: buyer credit Procurement of materials needed for the borrowing enterprises, firstly, financial institutions open up bank acceptances, borrowing enterprises with bank acceptances procure goods to suppliers, and logistics companies put in storage as a qualitative assessment of chemicals. in foreign exchange due honor, will be transferred to the supplier account. on the basis of financial institutions, at the request of the borrowing enterprises fulfill repayment obligations after the release of quality materials. If the borrowing enterprises default, the quality material will be repurchased by the supplier or logistics companies. Programme 5: Credit Facility Programmer 5 for reunification Credit lending operations is the logistics company on the basis of enterprise security management credit of the relevant provisions and requirements of financial institutions to provide credit guarantees to financial institutions authorized loan amount directly to the logistics companies, the logistics companies on the basis of the borrowing enterprises and demand conditions pledge loans and final settlement in this model, financial institutions are not participating in the project loan pledge specific operation. in the provision of pledge financing, it is also central to the borrowing enterprises to provide quality goods warehouse management services and regulatory services. Programme 6: Back Guarantee 603
In the programme 6, to store goods for direct borrowing enterprises to financial institutions for loans pledge a difficult situation, as goods from logistics companies will counter-guarantee collateral, the credit guarantee through logistics companies to achieve loans. Enterprise organizations can UNPROFOR, borrowing from a number of enterprises to joint logistics company guarantees to financial institutions secured by logistics companies to achieve financing. Even could be logistics companies with the ability to guarantee the borrowing enterprises pledge from combining direct loans to financial institutions. 4.3 integrated asset model Integrated operation including asset flows and capital flows operation mode is the mode of operation of the financial logistics of high-level, a higher demand on the financial logistics providers. For example, should have its own financial logistics providers wholly, or holding shares to financial institutions. Owned financial institutions, logistics companies Purchasers For example, we are familiar with UPS companies in the United States in May 2001 the first international bank M & As (First Sales), its transformation into UPS financial companies. IFC launched by UPS include opening letters of credit, bonds and other instruments of international export products and services. UPS Inc. as intermediaries in the tens of thousands of small and medium-sized exporters and Southeast Asia between the good offices of the purchase price within two weeks to the first hit exporters, is a prerequisite for its export clearance, cargo operations and receive a substantial fee, and UPS Inc. with the banks settles with the United States one by one. 5 Conclusion Financial Logistics is combined product of logistics services and financial services. Financial logistics not only offer our customers high-quality and high-value-added logistics and processing services, but also improve the overall supply chain performance and business customers, and capital efficiency for clients of the financial services directly or indirectly. According to the author of financial institutions (such as banks) in varying degrees, the financial logistics includes assets circulation model, capital flow model and integrated asset model.although the development of the financial logistics providers give financial logistics, supply chain nodes enterprises and financial institutions generate win-win results, the provider has to face a variety of risks. References [1]Seybold P.B. Customer relationship management concepts and examples[m]. Beijing: Machinery Industry Press, 2002. [2]Li Wenli. Logistics industry customer satisfaction research[eb/ol]. http//www.wzg.com.cn /info/ readnews.asp? news_id=727,2004-08-22. [3]Ji Guoguang, Zhao Zhu. 2000 edition of ISO9000 the standard training materials[m]. Beijing: Chinese standards Press, 2001. [4]Liu Yu. Customer satisfaction tests[m]. Beijing : Social Sciences Documentation Publishing House, 2003. [5]Wu Guihua. Research on customer satisfaction[d]. Changchun: Changchun tax Institute Master papers, 2001. [6]Angel Millan,Agueda Esteban. Development of a multiple-item seale for measuring customer satisfaction in travel agencies services[j]. Tourism Management,2004,25(5):533-546. 604