Suning Yuncheng supply chain financial model case study

For Suning Yuncheng, it is a comprehensive intermediary using its own network platform to represent all kinds of brand-name merchandise sales enterprises, using a mall-style B2C e-commerce supply chain finance, mainly to the suppliers stationed in the mall to provide accounts receivable financing services, and to take full advantage of the Internet retailing of the accumulated customer resources, customer information As well as the convenient customer service and experience based on the formation of the Suning ecological chain, through the Suning small loans to realize for the upstream and downstream end of the supply chain customer service. So, the following is a case study of the supply chain financial model of Suning Yuncheng that I have organized for you, welcome to read and browse.

First, the traditional supply chain financial model and ? Internet +? Supply Chain Finance Model Comparison

The traditional supply chain finance refers to the analysis of business transactions between enterprises in the supply chain on the basis of the supply chain of small and medium-sized enterprises in the supply chain to provide credit support and other settlement, financial services, such as money management, in the process of the service risk through the relationship between the credit enterprise and the core business and logistics supervision of the enterprise's inventory pledges to control. In the Internet era, the traditional financial industry seeks transformation and upgrading by combining with Internet technology, and the traditional supply chain financial model should also conform to the trend of Internet finance and realize the transformation and upgrading of traditional supply chain finance by integrating the resource advantages of the Internet era. Their characteristics are different but related.

1. Characteristics of traditional supply chain finance:

1.1 Banks' credit rating of credit-granting enterprises (mainly small and medium-sized enterprises (SMEs)) mainly relies on the real business volume of the enterprises as well as the capital strength of the core of the chain, instead of only emphasizing the financial status of the enterprises and the way of guaranteeing.

1.2 Credit funds are strictly limited to the purchase and sale activities between the credit enterprise and the core enterprise, prohibiting the diversion of funds for other purposes, which better reduces the credit risk, while the bank guarantees the movable assets or rights generated in the purchase and sale activities of the supply chain

2. ? Internet+? Characteristics of supply chain finance:

1.1 The speed of transportation in the supply chain is fast, the speed of transaction, the speed of payment, the speed of financing, the speed of logistics, and the supply chain informationization characteristics are obvious

1.2 The speed of transportation in the supply chain is fast, the speed of transaction, the speed of payment, the speed of financing, the speed of logistics, and the supply chain informationization characteristics are obvious

The second? Internet+? Supply chain finance three major modes and Suning Yunshang corresponding mode analysis

? Internet+? Supply chain finance is summarized in three major modes:

1, commercial banks traditional offline supply chain finance online

Banks are mostly based on the transaction records between the core enterprises and small and medium-sized micro-enterprises to provide financial support to small and medium-sized micro-enterprises. Through supply chain financial services, banks utilize bank credit to enhance commercial credit, which promotes the effective development of enterprise financing and commercial transaction activities.

2, based on the Internet platform of the e-commerce supply chain financial model

The third-party trading platform is usually to attract industry chain participants with the information service function, and information services as an entry point to transform the e-commerce platform, when the e-commerce platform to enhance the volume of transactions, and through the logistics and warehousing and other services to complete the entire transaction closed-loop, the third-party trading platform essentially has the industry chain upstream and downstream of the transaction, The third party trading platform essentially owns the transaction, logistics, cash flow and other related data of the upstream and downstream of the industrial chain, and can also meet the risk assessment requirements of the supply chain financing project by docking the capital source.

3. Commercial bank supply chain finance combined with e-commerce platform

In the core enterprise mode, the core enterprise of an industrial chain has a strong industrial chain control ability and a high bank credit limit. Under this premise, the core enterprise grasps the detailed information flow, logistics and capital flow of the upstream suppliers and downstream distributors, and also understands the operation status of the upstream and downstream enterprises through long-term business activities. Such core enterprises docking with the commercial banks or P2P platforms and other sources of funds can provide financing services to the upstream and downstream enterprises with the guarantee of their own credit line, which improves the operation efficiency of the whole industry chain.

For Suning Yuncheng, it is a comprehensive intermediary using its own network platform to act as an agent for all kinds of brand-name merchandise sales enterprises, utilizing a mall-type B2C e-commerce supply chain finance, mainly providing accounts receivable financing services to suppliers stationed in the mall, and taking full advantage of the customer resources, customer information, and convenient customer service and experience accumulated through Internet retailing on the basis of the formation of the Suning ecological chain. The company's main goal is to provide customers with the best service in the marketplace.

Three, Suning supply chain finance development history and current situation analysis

First of all, look at the most basic data: over the past three years, Suning's online business accounted for 13.2% in 2012, 13.2% in 2013, 17.7% in 2014, 17.7%. It can be found that from 2012 to 2013, Suning's online business development is very fast, while the development from 2013 to 2014 is very slow. This is due to the fact that Suning supply chain finance model was implemented from 2012 and achieved good results, but the progress of the new step was slightly delayed at the end of 2014.

In February 2012, Suning launched Suning Small Loan. This is a kind of e-commerce financial business launched for small and medium-sized enterprises, where Suning by, on behalf of the sales supplier can operate with the Suning e-shopping settlement receivables as collateral for financing loans, this business single financing amount of up to 10 million. 2014 July Suning crowdsourcing belatedly, it is for the participation of crowdsourcing platform for the enterprise, Suning will come up with the media resources and online and offline traffic diversion Resources to promote, Suning's? E-payment , a small loan company open to platform enterprises, the first batch of investment of 1 billion yuan to set up a platform credit fund. And in September 2014, the supplier growth special fund is proposed to help solve the financing difficulties of small and medium-sized enterprises. Suppliers in the financing to Suning, Suning will also take out special funds, through the form of interest subsidies to feed the suppliers, the highest subsidy for Suning credit interest of 20%.

Recently, that is, in May 2015, the promotion of capricious payment makes the user can use capricious payment to pay directly when shopping, enjoying the amount of money, the preferential period of 30 days of interest-free (fee), ultra-low handling fee installments and other services. This means Suning? Supply chain finance + fund insurance + consumer credit? The whole industry chain financial layout has been initially formed

Overall, for the current supply chain financial development of Suning's status quo, we are summarized in the following points:

1, Suning has cultivated more than 20 years of offline trading network and ranked the top three online trading platforms, with a large number of small and medium-sized enterprise customer resources.

2, business flow, capital flow, information flow and logistics in the Suning financial ecosystem to form an effective closed loop.

3, Suning supply chain financing has maintained a record of zero bad debt rate.

4, Suning supply chain financing without collateral and guarantee, but based on the credibility of the supplier's past trade to apply for credit line

5, Suning Finance's supply chain financing platform and the Suning back-end of the information system through the entire line, the efficient Suning internal risk control and data approval flow mechanism to make the approval process, the cycle of lending is greatly reduced.

Fourth, Suning's supply chain financing operation process

1, member qualification application: the supplier logs on the SCF platform to become a qualification member of the Suning Finance Club

2, expression of financing intention: the supplier to the marketing and settlement of the expression of intention to finance, to choose personalized financing products and cooperative banks.

3, Suning audit recommended: marketing, settlement recommended suppliers to the capital management department to discuss financing products, cooperative banks and other related matters

4, the bank issued financing: the bank according to the supplier's qualifications to determine the amount of lending and issuance of loans

5, the Suning due to pay: Suning due to the amount of the settlement payment to the supplier's financing special account, the bank deducted the amount of financing the supplier, and the supplier to carry out the final amount of the payment. The bank deducts the amount of the supplier's financing and settles the final payment with the supplier.

V. Comparison of Suning's supply chain financing with other financing

1. Comparison with BOE

BOE's financing process:

1.1 Approved amount: When the supplier confirms the supply chain finance business, the supply chain finance specialist will send an email to the supplier, informing the maximum financing amount, and the total amount of financing must be less than the maximum amount of financing.

1.2 Bank account opening: After obtaining the maximum financing amount, the supplier will go to the bank designated by Jingdong to open a special bank account for financing.

1.3 Submission of financing applications: After the supplier completes the account opening , you can handle the financing business, each time you finance, you should apply to the procurement and marketing colleagues to confirm the financing of the purchase order and other matters.

1.4. Check the settlement amount: the supplier selected purchase orders, should be with the procurement and marketing at the same time to check the settlement amount.

1.5 Submit the settlement request form: the person in charge of purchasing and selling submits the settlement request form in the Jingdong system, first checking the supply chain finance settlement, and then selecting the payment settlement application.

1.6 Settlement Statement Approval: Financing information submitted to the settlement statement in the system to complete the approval as a prerequisite for the approval of the progress of the impact and the progress of the release of funds, the need for suppliers and the person in charge of procurement and marketing to communicate.

1.7 Financing information preparation: After the statement is submitted, the supply chain finance specialist to prepare financing information, financing content based on the statement information.

1.8 Audit and submit the information: After the settlement statement audit, supply chain finance specialist to the bank to submit the prepared financing information, follow up the progress of the release.

1.9 Bank lending, BOE repayment: After the bank reviews the financing information correctly, the money is released to the supplier. On the due date, Jingdong repays the bank for the supplier. Credit refers to the bank to provide direct financial support to the customer, or the customer's credit in the relevant economic activities to a third party to ensure the behavior.

It can be seen that Jingdong has formed a set of big data-driven Jingdong supply chain system through strategies such as differentiated positioning and self-built logistics system, as well as through years of accumulation and precipitation, to provide loans and financial services for upstream suppliers, and credit and installment services for downstream consumers. Although, Jingdong magnificent logistics system seems to solve the B2C e-commerce enterprises nearly dependent on the passive situation of third-party logistics, but Jingdong nearly unlimited amount of capital investment is seriously pulling the development of Jingdong; and as the traditional industry involved Suning, is relying on the offline thousands of chain stores, 100 logistics centers, 3,000 after-sales service outlets, the construction of a perfect chain of stores and logistics systems will become Suning's one of the biggest advantages, which can not be compared to Jingdong. Moreover, Suning for suppliers, with a specialized supply chain financing platform (SCF), and a number of banking systems for seamless docking, to ensure that the supplier simple, fast financing, small and medium-sized enterprises can quickly obtain liquidity from the bank without guarantee, without collateral. This is something that Jingdong does not have.

2. Comparison with bank credit:

2.1 In Suning's supply chain financing, suppliers pledge or transfer their accounts receivable to the bank without collateral, without security, fast access to financing, and SMEs can quickly obtain liquidity from the bank without collateral, without guarantee; while in traditional bank credit, no matter whether the supplier is big or small, you need to Provide collateral (such as real estate, etc.) or find a guarantee, the process is cumbersome, slow lending, if there is no collateral or guarantee, the bank will not give the supplier lending, which is the biggest drawback of the traditional bank credit;

2.2 in the supply chain of Suning's financing, electronic operation to meet the supplier's short, frequent, fast, urgent financing needs; the traditional bank credit needs a large number of manual operation, unable to meet the SMEs short, frequent, urgent, rapid financing needs. Meet the small and medium-sized enterprises short, frequent, urgent, fast financing needs, can not keep up with the current electronic demand;

2.3 In comparison, Suning supply chain financing has a wider variety of financing methods, many times out of the single, many times of the financing, the supplier can be operated, high flexibility, the supplier can choose the appropriate financing methods according to their own needs, and the traditional bank credit financing method is single, inflexible, the supplier There is no choice but to follow the bank's requirements;

2.4 Suning's online business is not subject to the geographical limitations of the supplier's location, which can serve more enterprises, while traditional bank credit is subject to the limitations of the bank's loan territorialization, the supplier can only go to the local bank to get a loan, which is too confined to the region and can not effectively enhance the efficiency of the

Sixth, the development of the Suning Supply chain finance risk and its recommendations

1, Suning supply chain finance risk

Suning Ebay said that it will be for the country's upstream by the sales of the main supply chain financing business. Suning supply chain finance business, is in the original credit? The bank's factoring business is based on the Suning Supply Chain Finance business. The new upgrade of Suning's supplier financing business is based on the original credit card, bank factoring, and financing business. Suning newly launched in 2012? Suning Small Loan Financial services will also be fully open, which? Suning Small Loan Suning enterprise funding for small and medium-sized enterprises to launch e-commerce financial services, where Suning by, on behalf of the supplier can be operated with the Suning e-buy settlement receivables as collateral for financing loans, the business of a single financing amount up to 10 million. Suning announced a comprehensive e-commerce financial business, Suning supply chain financial services for small and medium-sized enterprises to fully open.

Suning's launch of its financial business is the first time a traditional domestic retailer has ventured into e-commerce finance, both for its own sake and for China's traditional retail industry, which is of great significance. However, due to its traditional retail industry background, the development of supply chain finance through Suning E-commerce will face special risks.

1.1 The risk of occupied funds for offline business

Suning proposed ? Technology innovation, intelligent service? slogan, through a series of operations to increase investment in technology and services, the company has always insisted on? The company has always adhered to the business strategy of "front-end driven back-end, back-end driven front-end". business strategy, constantly improve the logistics platform, information system construction, in the long term, is conducive to business stability, but in the short term, with the purchase of stores, self-built stores, logistics systems related to increased investment in assets, affecting the efficiency of the turnover, the need for capital is also growing, while in order to keep up with the development trend of the retail industry, Suning vigorously develop the e-commerce supply chain finance, but also to further increase its demand for capital. At the same time, in order to keep up with the development trend of the retail industry, Suning vigorously develops e-commerce supply chain finance, which further increases its demand for capital.

1.2 Risk of online business being constrained by banks

Suning has been strengthening its cooperation with banks to carry out supply chain finance activities, and with the further development of the online platform, it can reduce the liquidity risk brought about by occupying its own funds, but at the same time, it also creates the risk of being easily constrained by the banks, because most of the service objects of the e-commerce supply chain finance are small and medium-sized enterprises (SMEs), and it ensures that the funds from the Banks flow to these companies that originally did not meet the bank's credit standards is Suning's credit, which increases its own risk, in the case of economic downturn will have a significant impact on the company, at the same time, if the company's offline business is unstable, the bank will reduce the credit to Suning, thus restricting the development of supply chain finance.

2, Suning's development of supply chain finance to avoid the risk of the proposal

2.1 Strict control of the credit process, strengthen the management of credit personnel

The credit process mainly refers to the approval of the loan, loan issuance, and post-credit management and other aspects of the e-commerce business should be strict control of the risk of each link, the establishment of a perfect . Risk firewall, that is, risk early warning procedures. At the same time, always monitor the flow of funds of credit-granting enterprises and their business situation, establish non-performing asset disposal procedures and risk response measures, and prevent risks from the system; supply chain finance credit personnel should strictly implement the credit-granting business process, and strictly follow the multi-level risk warning and management system of pre-credit, credit and post-credit, and prevent credit risks from the personnel. Strengthen the relevant business training, improve the quality of business personnel line, the development of supply chain finance must be based on the improvement of personnel solicitation, should start from the recruitment and selection, training, incentives and other human resources modules to improve the quality of business personnel.

2.2 Strengthen the offline financial control

Suning Ebay is now in the domestic e-commerce market share ranked third, but far lower than Taobao's market share of more than 52%, the development of the company is not healthy enough, can not be detached from the offline business capital and human resources to support, but the development of the Suning Ebay has just started, the potential for a huge, and therefore the need for financial support is short-term. will continue to increase, which requires the company to increase attention to financial security, to ensure that the capital investment in a gradual and orderly manner, and can not drag down the development of offline business, otherwise, it will lead to financial risk.

2.3 Credit Asset Securitization

Credit asset securitization refers to the packaging of credit assets of various risk levels, which are packaged and listed or sold to investors in the market. On the one hand, it can increase the liquidity of assets, and on the other hand, it can transfer credit risk. This approach can improve asset quality, ease capital pressure, expand funding sources and improve financial security.

2.4 The use of a variety of risk control tools to distinguish between risk categories, identify potential losses

ERP system refers to the establishment of information technology based on systematic management thinking, for the enterprise decision-making layer and employees to provide decision-making means of operation of the management platform. It is a new generation of integrated management information system developed from MRP (Material Requirements Planning), which extends the functions of MRP and its core idea is supply chain management. It jumps out of the traditional enterprise boundaries, from the scope of the supply chain to optimize the enterprise's resources. Electronic Data Interchange, also known as EDI (Electric Data Interchange) is a new method of using computers for business processing, which is to trade, transportation, insurance, banking and customs and other industries with an internationally recognized standard format, through the computer communication network, so that the relevant departments, companies and enterprises to exchange and process data and complete the trade-centered business process. Trade as the center of all business processes. Relying on Internet technology, through the ERP system platform, the use of EDI and other information processing technology, the establishment of material and capital data highly **** enjoy the information network can effectively avoid risk.

2.5 Establishment of emergency response mechanism

Supply chain finance involves more enterprise subjects, the scope is relatively wide, and the ensuing uncertainty of each link is more, it is easy to appear some emergencies, so the e-commerce enterprises should establish a perfect emergency response mechanism. The emergency mechanism should be able to solve two aspects of the problem, one is the prevention of emergencies, through a number of evaluation indicators to monitor the business status of the credit enterprise, problems occur to achieve timely detection and make adjustments; the other is the handling of emergencies, the development of timely and perfect processing measures, when emergencies occur, timely processing, so as to avoid the handling of untimely and bring more serious risks. .

VII, Suning Yunshang supply chain financial development trend prediction

1, supply chain data

The information nodes are gradually data, transparent. Each link of the supply chain transaction chain of the order situation, transaction history, the main body of the transaction and other information will gradually precipitated in the platform, the platform can comb these data provided to the bank, the bank to provide funds, the platform for the authenticity of the data to provide a guarantee.

2, financial Internet

With the Internet integration? Logistics, capital flow, information flow, business flow? Supply chain financial business processing can be more rapid, accurate and stable, trade links and financing links are also more low-carbon, smooth and convenient.

3, business integration

? E-commerce+Logistics+Finance? All-in-one service. E-commerce is the most innovative business model under the new situation in the front-end areas; logistics companies are supporting the solid support of the supply chain entity goods transportation and flow; commercial banks are the largest and most comprehensive capital and financial services in the society of the service provider.

4, service personalization

According to the different businesses of different enterprises, tailor-made financial services, supply chain financing products to achieve personalized customization, so that the supply chain financial products and service model innovation possible.

References

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2. Cha Hongwei. Exploration of supply chain finance of e-commerce [M]. Shanghai Jiao Tong University, 2014

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4. Liang Zhong. Research on the Risks of Developing Supply Chain Finance in E-commerce Environment--Taking Suning eBay as an Example [D]:[Master's Thesis].2013

5. Du Juan. Suning Yunshang:Supply Chain Financial Services for Small and Medium-sized Suppliers[J].WTO Economic Guide.2013

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