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The development trend and innovation direction of supply chain finance

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The application of the supply chain financial platform in different industries will inevitably lead to different industry characteristics, which will promote the development of the supply chain financial platform in a more subdivided, precise and professional direction, and the comprehensive services of the supply chain financial platform will gradually become mature.

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Supply chain finance is a systematic concept and a systematic financing arrangement for all member enterprises of the supply chain. It is specifically described as a financing innovation solution that takes the relevant enterprises in the supply chain as a whole, designs a financing mode according to the chain relationship and industry characteristics formed in the transaction, and provides flexible financial products and services for each member enterprise.

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Relying on the real trade background and the closed operation of funds, it reduces the risk of commercial banks and brings considerable deposit and intermediate business income to commercial banks.

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This reflects the core value of supply chain finance to some extent, that is, through the supply chain finance business, SMEs can no longer get money from banks. From the perspective of banks, the SME credit market can be effectively opened through the supply chain financial platform.

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Although the online supply chain finance platform originates from the traditional offline supply chain finance, it is not a simple online version of supply chain finance, but a financial innovation born with the growing maturity of Internet technology and big data applications.

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Up to now, the solution providers of online supply chain finance platform are not limited to commercial banks. Trust companies, e-commerce platforms, third-party payment companies, P2P platforms, and supply chain specialized service companies have all participated in the supply chain finance business, combining their own business characteristics and industry advantages to provide online supply chain finance solutions for various industries in different business scenarios. Thereafter, e-commerce supply chain financing, P2P+supply chain financing, bulk commodity supply chain financing and other modes will gradually emerge. At present, even a few industry leaders have begun to actively build an online supply chain financing platform.

Essence of online supply chain financial platform

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First, the online supply chain financial platform is a credit creation platform. It understands the operation of enterprises through big data and provides credit support, not just on the financial surface.

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A senior executive of a commercial bank once said that the innovation of the supply chain financial platform lies in the thorough innovation of the definition and operation mode of risk management with the help of network technology.

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Traditional risk control only pays attention to the review of balance sheet, cash flow statement and profit statement, but now the risk control department must comprehensively study the “four flows”, namely business flow, capital flow, logistics and information flow. It can be said that the development of the supply chain financial platform is an inevitable demand of the market.

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From the perspective of practical application, the above description can be understood as providing the business data of core enterprises, suppliers and dealers to banks for data analysis by commercial banks, so as to complete the verification of the key information of direct credit to enterprises, making the financing process simpler and faster and the risk warning more timely.

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From this point of view, the development of online supply chain financial platform is gradually replacing the “ERP+bank supply chain financial system” model, and developing to the two models of “supply chain collaboration platform+online supply chain financial service platform” and “industrial e-commerce platform+online supply chain financial service platform”.

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Second, the online supply chain financial platform is not a revolution but an improvement.

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The first is to improve the efficiency of capital utilization, that is, to invest money in the places where it is needed and where it can create more value at the fastest speed;

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Second, the traditional financial institutions have improved the service mode and service concept of enterprises, breaking the traditional bank dominated mode, and the situation that banks only provide financial services directly to a single enterprise, but have nothing to do with the upstream and downstream of core enterprises;

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The third is the improvement of supply chain management level of core enterprises.

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It has not only realized online service, Internet marketing, standardization of workflow and automation of risk control, but also built an open, interactive and information sharing e-commerce platform for banks, core enterprises and their upstream and downstream, which has greatly promoted the operation of the supply chain.

Four innovation points of online supply chain financial platform

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First, significantly improve the capital turnover rate of core enterprises and upstream and downstream enterprises, and reduce operating costs.

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Traditional supply chain finance usually only extends credit to core enterprises and signs a general contract, which requires cooperation and communication between core enterprises and banks, core enterprises and upstream and downstream enterprises, upstream and downstream enterprises and banks, warehouses, guarantee companies and regulators. Every time a business occurs, a single sales contract should be signed again according to the big contract, and the process of single business loan should be followed again. The process is very cumbersome. On the online supply chain financial platform, after completing the first process, each loan repayment should be completed online within the business cycle. The procedures are simple and repayable at the same time, which greatly reduces the financing cost of SMEs, improves the capital turnover rate of enterprises, and reduces the operating cost.

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Second, improve the management efficiency of core enterprises.

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On the one hand, the online supply chain financial platform has solved the problem of unmatched system upgrading and updating speed between banks and enterprises. Generally speaking, banks upgrade slowly, enterprises upgrade quickly, and the matching degree is poor. The online supply chain financial platform can realize two-way connection and matching;

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On the other hand, the online supply chain financial platform has broken the rigid product combination model of traditional financial institutions, and can infiltrate financial services into all aspects of business activities on demand, improving service levels and shortening service response time.

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The third is to solve the problem of information symmetry between banks and enterprises, so as to provide a basis for SMEs’ credit.

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In the traditional mode, banks mainly view the financial statements of core enterprises and upstream and downstream enterprises, which are past and static data; Through the Ruitong supply chain financial platform, dynamic data has been effectively collected, enabling financial institutions to grasp the business situation of enterprises in real time and improve the sensitivity of decision-making.

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Fourth, the online supply chain financial platform has broken the geographical restrictions to better provide services for the upstream and downstream of core enterprises.

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Traditional supply chain finance can only cooperate with local branches or sub branches due to the regional characteristics of its business; The online supply chain financial platform can provide loan support for upstream and downstream enterprises in different regions through online cooperation.

Perspective of Online Supply Chain Finance Cases

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In the industrial chain, the core enterprises can be divided into production type core enterprises, circulation type core enterprises and resource mining type core enterprises according to their functions. In the industrial chain, core enterprises usually have a strong control over upstream and downstream enterprises. With their credit radiation, they can carry out upstream and downstream online supply chain financial business.

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For example, a food processing enterprise is a leading enterprise in the quick-frozen food industry (hereinafter referred to as “Enterprise A”). Enterprise A has many common problems in advance payment management. First, the information flow and capital flow are separated during the implementation of advance payment, which leads to low efficiency in the whole process. Second, the downstream enterprises are temporarily short of funds due to poor capital turnover. In this case, the financial manager of enterprise A needs to confirm the advance payment information by regularly querying the vostro information, and then manually register it in the financial system; If the customer changes the payment account, depending on the vostro information only, Enterprise A cannot determine the advance payment of the specific customer. It is very troublesome to determine the advance payment information together with the sales.

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Through the introduction of online supply chain financial service platform, a series of processes have been optimized to achieve the following effects:

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First, dealers can recharge by themselves, which does not require financial audit and verification of the core enterprise, reducing errors and manpower;

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Second, if the balance is insufficient when the dealer places an order, the system will automatically prompt the difference and recharge, without manual notification;

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Third, if the dealer’s own funds are insufficient, click the “financing purchase” button, and the core enterprise e-commerce platform will automatically send the electronic order (contract) data to the online financing service platform. The sales manager of Enterprise A can log in to the online financing service platform to confirm that the order (contract) is correct, and if it is correct, send the electronic order (contract) data to the bank through the online financing service platform, The bank loans to the dealer’s account, and automatically pays to the account of enterprise A to complete the order payment operation;

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Fourth, if the payment is successful, a shipment document will be automatically generated with a payment voucher attached. The warehouse keeper can immediately see it. If there are goods in the warehouse, you can print it and arrange shipment. When dealers purchase goods with loans, they need to repay and redeem the goods. Enterprise A can arrange shipment. Generally, the proportion of dealers’ loans does not exceed 70%;

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Fifthly, after the shipment is completed, the system automatically generates financial vouchers according to the actual shipment quantity and imports them into the K3 system (enterprise ERP system); Sixth, the whole process is all electronic, without manual operation and manual check, and the error rate is 0; If there is no error, it can reduce the management cost of dealing with errors and standardize the enterprise operation.

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Enterprise A not only has the above problems in advance payment, but also has similar problems in order management. The main reason is that Enterprise A does not have its own e-commerce platform. The previous online sales used Tmall to open stores. The online store sales data cannot automatically interact with the enterprise ERP system. The inventory information in the order and enterprise ERP, as well as the advance payment information in the financial system, need to be manually maintained and checked. Order management is basically manual processing.

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In view of the above problems, core enterprises generally establish special ERP systems and financial systems for procurement, production, inventory and order to support the normal operation of business. However, because the data of each system is not interconnected, the offline manual sorting method is still adopted when different departments need to exchange data. The artificial isolation of business flow and capital flow leads to the delay and error of information transmission.

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Through the way of “Internet+payment+financing”, the Internet technology is used as the carrier, digital signature technology is used as the guarantee, and the system between e-commerce platforms, third-party payment and financing platforms is seamlessly connected. On the basis of enterprise information flow, business flow and logistics, the Internet financial products and services provided by banks, trusts and other financial institutions are implanted according to different trade links, so as to achieve information flow, business flow The four flows of logistics and capital flow are integrated.

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It can be seen from the above cases that: first, core enterprises implement online supply chain financial services with enterprise informatization as a breakthrough; Second, the introduction of bank funds is no longer based solely on the financial statements of enterprises, but based on the real trade background and trade links for intelligent allocation of funds; Third, dealers have realized convenient, flexible and fast financing, in fact, they have used the credit of core enterprises as endorsement.

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First of all, it will develop into a more subdivided industry, more specialized and more accurate service. The application of online supply chain finance in different industries will inevitably lead to different industrial characteristics, which will promote the development of online supply chain finance in a more subdivided, precise and professional direction, and the comprehensive services of industrial online finance will gradually become mature. In recent years, major financial institutions have launched offline supply chain finance in industries and fields. Online supply chain finance will continue to use this idea and model to provide customers with more professional financial services in the subdivided fields according to the advantages and characteristics of financial institutions.

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Secondly, gradually change the original credit evaluation system of commercial banks. The cost of information acquisition will be greatly reduced, the credit system will be further improved, and data between different financial institutions will be shared. Online supply chain finance will be deeply applied through the Internet, and transaction, logistics and other data will be easier to obtain. After big data technology processing, specific credit reports will be formed to facilitate financial institutions to better judge and make decisions.

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Thirdly, the application of big data has been fully reflected. The monitoring of financial institutions on loan enterprises or loan objects will change from static data such as financial statements to real-time monitoring of dynamic data to minimize risks. At present, big data institutions have cooperated with financial institutions to customize the enterprise version of the “physical examination report” for enterprise customers. Relying on rich real data sources and big data processing technologies, the range of standard data is calculated, and their credit is judged reasonably through the matching of upstream and downstream enterprise data. The biggest highlight of this report is the real-time change of data, and it provides some data change forecasts, monitors the whole business cycle, and can timely notify and give suggestions, so as to minimize the risk of financial institutions.

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Finally, the in-depth combination with industrial e-commerce will promote the maturity of industrial finance. Looking into the future, traditional enterprises are still an important pillar of China’s economy. E-commerce itself cannot change the nature of logistics management, resource allocation and payment settlement, but it can greatly improve efficiency. The e-commerce of traditional industrial chain is an inevitable trend to maximize the interests of enterprises and enhance the competitiveness of the whole supply chain in the future. In this process, the combination of industrial e-commerce and online supply chain finance will become closer and closer, which is bound to generate more new value-added services, create a new industry ecology, and promote the model of industrial financial services to mature gradually.

Promoting the development of online supply chain finance requires reform and innovation

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First of all, from the perspective of commercial banks, they should break the original risk control operation mode and institutional restrictions of credit business, and actively establish a new transaction monitoring and risk management system under the Internet model. It aims at the innovative business of online supply chain finance, and realizes the reform and innovation of the bank’s existing management mode.

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Secondly, from the perspective of core enterprises, we should make full use of information technology, such as cloud computing, big data analysis technology, the Internet of Things, electronic payment and other emerging technologies, apply them to online supply chain finance, closely follow the development of the Internet and e-commerce, and accelerate the process of supply chain management informatization and supply chain e-commerce.

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Finally, from the perspective of government and industry funds, we should give strong policy and financial support to platform enterprises that support SMEs’ supply chain financial innovation business. Such enterprises have strong innovation ability, and have a deep understanding of the rules and needs of traditional industries. However, such enterprises are small in number and scale, and cannot effectively support the industrial transformation and upgrading. Therefore, it is not only necessary for the government and the industry fund to provide support in terms of policy and funds, but also for the targeted training of professional and applied talents in the direction of online supply chain finance, industrial e-commerce and industrial finance at this stage.

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