Assistance of Internet of Things to Intelligent Business Management Model of Supply Chain Finance and Modern Logistics Enterprises

Assistance of Internet of Things to Intelligent Business Management Model of Supply Chain Finance and Modern Logistics Enterprises

Qing Li
Copyright: © 2023 |Pages: 17
DOI: 10.4018/IJDWM.323189
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Abstract

Since its birth, supply chain finance (SCF) has made contributions to the development of small and medium-sized enterprises, but it also faces many challenges in the development process. With the development and continuous progress of the internet and information technology, it has also opened up new ways for urban development and innovation. This article introduced the background of intelligent business model, conducted academic research and summary on the keywords of SCF and the internet of things (IOT), and then summarized urban analysis by combining AI and big data. Then it put forward the business model factor analysis of SCF and modern logistics enterprises. At the end of the article, the simulation experiment was carried out, and the experiment was summarized and discussed. The experimental results showed that the average transaction cost of the new business model was 3.5 lower than that of the traditional business model. With the continuous development of artificial intelligence technology and big data technology, urban planning is also facing new opportunities and challenges.
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Introduction

With the development trend of smart logistics in the future, the transportation cost of global economic integration may be higher and higher. How to reasonably allocate and use resources to effectively reduce production costs is a problem that major companies must address. To achieve this goal, a highly developed, reliable, and fast logistics system should be established. With the global economic integration and the booming Internet economy, the role of logistics has changed from a single cost control to improving the service quality of customers and the overall competitiveness of enterprises.

Many scholars have studied the business model intelligence of supply chain finance (SCF) and modern logistics enterprises. Liu et al. (2019) reviewed the current SCF and analyzed the business model based on the city’s background, internal and external advantages and disadvantages, and development trend. Ping et al. (2018) analyzed the existing problems from the perspective of reverse logistics and proposed corresponding countermeasures on how to deal with reverse logistics. Liashenko et al. (2021) proposed a structural solution for the interaction between transportation and logistics cluster and innovation ecosystem through research, so as to achieve the strategic goal of regional innovation development based on intelligent skills.

Rostami et al. (2019) made a theoretical analysis on the ways of SCF to improve the competitiveness of logistics enterprises and established a comprehensive evaluation index system. Kurpjuweit et al. (2021) sustained that the account manager platform based on blockchain technology can improve the visibility of the supply chain, promote the digitalization of the supply chain, and support the SCF. A group of commercial and financial procedures supported by technology that offers flexible payment options to a buyer and one of their suppliers at lower financing rates. This technology allows buyers to consent to financial institutions financing of suppliers’ bills and the provision of working capital through a short-term credit facility improved liquidity for both parties. It will also expose the potential risks and enable executable and optimized plans.

SCF “can bring stability and flexibility to these supply chains by bringing the lowest cost of capital to where it is needed most in the supply chain to shift focus from survival to improving efficiency, innovation, and investment in new products” (Kartskhiya et al., 2020). Besides, it will help to reduce risks and advance the birth of the shared factory system. Kartskhiya et al. (2020) found that, in traditional business operations, the supply chain management and logistics system using digital technology has strong advantages. Doktoralina & Apollo (2019) found that there is a significant positive correlation between enterprise strategic management accounting practices and supply chain performance, and there is a positive correlation between supply chain performance and enterprise profits. Li and Chen (2019) mainly studied the competitive advantage of the third-party logistics enterprises based on strategic orientation in marketing practice (Majeed & Rupasinghe, 2017). The above scholars achieved good results, but the continuous updating of technology poses some problems.

Many scholars have analyzed, at different levels, how to use the IoT to help SCF and modern logistics enterprises. Majeed and Rupasinghe (2017) showed that, with the rapid development of new technologies such as big data, IoT, and cloud computing, almost every element of modern life is impacted by technology, including productivity, socializing, food and healthcare access, and transportation efficiency and safety. The power of the Internet has facilitated the emergence of international communities and made it easier to exchange information and resources. The best ways to power every strategy sharing information effectively in a different enterprise management model are as follows:

  • Defining a personal communication style.

  • Being open-minded.

  • Using effective communication techniques for the team.

  • Creating a circle, not a line, in communication.

  • Keeping everything accessible.

  • Requesting feedback and being aware of when to use different channels.

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