Financing provision strategies for third‐party logistics with consideration of supply chain resilience

Abstract Third‐party logistics (3PL) offers credit guarantee financing and direct financing to capital‐constrained small and medium‐sized enterprises (SMEs), leveraging their informational advantages. However, SMEs’ default risk due to demand fluctuations poses a challenge for 3PL in providing the appropriate financing mode. This research investigates the financing strategies offered by 3PL with resilience considerations. We scrutinize the financing preferences of 3PL, the manufacturer, and the capital‐constrained retailer by comparing credit guarantee financing, 3PL direct financing, and trade credit. Furthermore, we analyze conflicts and coordination regarding equilibrium financing modes. Our findings reveal that 3PL's financing provision strategy depends on the manufacturer's cost and the retailer's initial capital. Besides, the financing equilibrium may be detrimental to supply chain members due to their inconsistencies in financing strategies. We propose a coordination mechanism to improve the overall profitability of supply network stakeholders. This study offers managerial insights for 3PL to provide financing modes while considering resilience rationally.

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Publication Details

Journal
International Transactions in Operational Research
Published
2024-12-27
DOI
https://doi.org/10.1111/itor.13602
Citations
11
Primary Topic
Supply Chain Resilience and Risk Management
Type
article
Field-Weighted Citation Impact
6.10

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article

Financing provision strategies for third‐party logistics with consideration of supply chain resilience

Lu Liu, Liukai Wang, Wenhao Zhang, Yuying Sun
11 citations
International Transactions in Operational Research
Supply Chain Resilience and Risk Management
6.10
article

Financing provision strategies for third‐party logistics with consideration of supply chain resilience

Lu Liu, Liukai Wang, Wenhao Zhang, Yuying Sun
article en
11 citations

Abstract

Abstract Third‐party logistics (3PL) offers credit guarantee financing and direct financing to capital‐constrained small and medium‐sized enterprises (SMEs), leveraging their informational advantages. However, SMEs’ default risk due to demand fluctuations poses a challenge for 3PL in providing the appropriate financing mode. This research investigates the financing strategies offered by 3PL with resilience considerations. We scrutinize the financing preferences of 3PL, the manufacturer, and the capital‐constrained retailer by comparing credit guarantee financing, 3PL direct financing, and trade credit. Furthermore, we analyze conflicts and coordination regarding equilibrium financing modes. Our findings reveal that 3PL's financing provision strategy depends on the manufacturer's cost and the retailer's initial capital. Besides, the financing equilibrium may be detrimental to supply chain members due to their inconsistencies in financing strategies. We propose a coordination mechanism to improve the overall profitability of supply network stakeholders. This study offers managerial insights for 3PL to provide financing modes while considering resilience rationally.

International Transactions in Operational ResearchVol. 33(4)
Shandong University of Science and Technology (CN), University of Science and Technology Beijing (CN)
National Natural Science Foundation of China
Openalex Percentile: Top 4%
Supply Chain Resilience and Risk Management
6.10
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Financing provision strategies for third‐party logistics with consideration of supply chain resilience — Lu Liu, Liukai Wang, et al. · International Transactions in Operational Research (2024) | TGRS Research Map | TGRS