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

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.