Pictured Associate Dean of Renmin University of China Song China
| Source: Xinhua
| Author: cable Wei
Original title: Song China: from integration into the global supply chain to create a global supply chain
2020 Nian 11 Yue 5 Ri , Supported by the Shenzhen Municipal Bureau of Commerce and undertaken by Shenzhen Eternal Asia Supply Chain Co., Ltd., the New Growth Summit Forum on Supply Chain and Trade Globalization was held at the same time as the third China Import Expo. Song Hua, deputy dean of the Business School of Renmin University of China, accepted an exclusive interview with Xinhuanet reporters on the future development direction of China's supply chain industry.
Song Hua said that in the construction of domestic and international double cycles, the supply chain can play a role in supporting and supporting the realization of the cycle. Through the holding of the CIIE, especially this special CIIE, the supply chain industry will gradually transform from being integrated into the global supply chain to co-creating a global supply chain. In the process of opening up to the outside world, will be different from foreign countries. Industry entities and different industries can jointly build a supply chain, co-exist and co-create, and promote the upgrade of the global supply chain.
What are the problems in China's supply chain industry that need to be solved urgently? What are the keywords for future development? How can supply chain companies promote industrial development? Song Hua shared his views.
01
"The premise of supply chain finance is the industrial supply chain"
relying on supply chain finance to solve the problem of financing difficulties and expensive financing for small and medium-sized enterprises, is increasingly being expected by industries and enterprises. "In fact, supply chain finance should serve the real economy more," Song Hua said. How to effectively solve the paradox of weak credit and operating capabilities of small and medium-sized enterprises and the increase in financing of small and medium-sized enterprises which lead to the increase of default rate?
Song Hua proposed that first is to accurately define the positioning of all parties in the supply chain. The premise of supply chain finance is the industrial supply chain. Whether it is manufacturing, distribution, industrial procurement, distribution, warehouse management, and market channel management, the industrial foundation must be solid.
"A large number of industrial enterprises believe that supply chain finance is a means of profit, and this is wrong." Song Hua said that the purpose of supply chain finance is to activate the industry with finance, and the purpose is for industry rather than finance. Enterprises should not blindly develop it as a profit growth rate.
At the same time, another aspect of supply chain finance that is commonly misunderstood is that when it comes to supply chain finance, the first thing people think of is lending. But the connotation of supply chain finance does not stop there. For example, in the B2B field of the industry, the payment separation between the enterprise and the enterprise, the organization and the organization will have a huge impact on the cash flow of the industry, such as the transaction of financial assets. Can the entities operated by entities be better connected to the capital market? Let more capital and financial parties cooperate and systematically serve the industry. Song Hua said: "The development of supply chain finance will definitely require the development of financial supply chains in the future." He said that, for example, the supply chain bills piloted by the Shanghai Stock Exchange are beneficial attempts in my country’s efforts in this regard. They can combine the assets of the businesses generated in the physical industry into asset packages with similar businesses and the same maturity, and connect with the secondary market, The capital market refers to the introduction of funds and investment into the industry. He also pointed out that the supply chain Jierong can also solve the connection problem of multiple financial products and institutions by means of insurance and loan linkage. At present, Guangdong's investment + insurance + supply chain financial financing is an exploratory supply chain financial innovation. In the future, for breakthroughs in supply chain finance, insurance will be an important part.
In addition, Song Hua proposed that supply chain finance cannot solve the problem of operating funds based on the core enterprises of the industry. China has a huge industrial cluster, and there are no core enterprises in many industries. Therefore, the original supply chain finance relied solely on the credit of a certain core enterprise, and it has to turn to a supply chain that relies on the network and ecology.
02
"Supply chain credit cannot simply look at the principal credit"
Small and medium-sized enterprises have insufficient natural credit. How can supply chain finance support the long-term development of enterprises? Song Hua pointed out that the risk control and management system of the financial industry needs to be changed in accordance with the times, namely: establishing supply chain credit.
Supply chain credit cannot simply look at the credit of the main body. This is something that many small and medium-sized enterprises do not have. It needs to look at the company’s operations and business capabilities, as well as its upstream and downstream business transactions, changes in documents, etc., to be established in this process Song Hua called the credit system of the supply chain. Supply chainCredit is not solely based on credit information, such as financial statements, and pledged assets and guarantors, but a three-in-one risk management and system, namely: structured digital credit-enterprise and upstream and downstream, network, and third parties The credit generated by logistics due to business transactions, traditional subject credit and digital credit. From a micro perspective, companies themselves must build digital trust around the use of modern information and communication technologies.
At the same time, this requires the regulation of macroeconomic policies and the help of infrastructure. Song Hua called for the establishment of policies as soon as possible to strictly control the non-credible behaviors of enterprises, such as deliberate occupation, lengthening the account period, and a large number of industry uncertainties. In terms of system construction,
should conduct standardized, electronic, and online processing of all documents that occur in the supply chain as soon as possible, including warehouse receipts, waybills, and face orders. Song Hua believes that a big problem hindering the development of today's supply chain, including supply chain finance, is that the specifications and standards of a product and a document are not uniform in the industry. Therefore, system construction is essential. At the same time, new infrastructure such as digital warehouses must be strengthened to solve the large number of business ethical risks surrounding finance, which also requires the formation of a collaborative management system between management departments.
Song Hua also emphasized that supply chain finance must be precisely implemented, and the policy of universalizing the raindrops is not in line with China's development. The credit evaluation of the three dimensions of technology, order, and development path should be used to clarify whether the enterprise is truly competitive and determine the support objects of supply chain finance.
03
"The supply chain ecology needs to be open and professional"
What are the important characteristics of today's supply chain? It is both open and collaborative. Song Hua concluded. He said that the industry still needs to form a standard, which requires leading companies to take the lead, or a number of leading companies in the industry to form an alliance to regulate the operation of the industry.
He proposed that the modern supply chain is an innovative organization method for the industry. This method integrates resources by improving efficiency and benefits, and realizes a new production organization method that achieves efficient coordination throughout the entire supply chain. It is a professional and open Ecological construction requires the formation of collaborative forces. Therefore, the industry can be open, but not scattered. He said that it is difficult for a single company to drive all upstream and downstream related parties, or to drive collaborative innovation in surrounding industries. Only the efficient synergy of business flow, logistics, information flow and capital flow can be called the coordinated development of the supply chain.
is based on the status quo of large but not strong, scattered and unfounded. Today, there are still many industries in China at the middle and lower end of the smile curve. Song Hua said that professional supply chain service platforms such as Eternal Asia can highlight their value. "Yours is yours, mine is yours", through empowering industries and brands, clearing blockages, and boosting industrial development with supply chain thinking. He said that the creation of the industry supply chain involves multiple business links, including manufacturers, circulation and distribution, logistics warehousing, imports, etc. How to combine different industries and fields through the organization of the supply chain? In this regard, Eternal Asia has done a lot. Innovation, now Eternal Asia is actively promoting the development of the industry by injecting digital capabilities into the enterprise, which is undoubtedly in line with the development trend of the world's digital economy.
Source: Xinhua Author: cable Wei
