Electric giants scramble to open supply chain finance

At the end of the year, electric business enterprises in various forms to do promotions. Behind these eye-catching promotions, the most interesting thing is the action of the first camp companies in the financial sector.

After the Beijing-east release of supply chain financial products, suning appliances (002024, shares bar) also issued a small loan company announced on December 7, and Alibaba in the financial sector has been operating for 2 years. In other words, the electric business giants have started to use financial means to service suppliers, to meet the suppliers to the capital turnover rate of demand, thus more deeply stuck to suppliers.

"In the electric business, finance can be regarded as the top of the food chain." "One industry judge is that supply chain finance can create a closed loop of services, tying suppliers tightly to their own platform, which is the most effective way to compete for suppliers."

Suppliers ' Capital turnover requirements

For the supplier, he does not want to put more money on the goods, but hope that the money flow, improve the turnover of funds.

Suppliers hope that the sooner they get the money, the better, and the retailer wants to defer payment to the supplier, or call it a period, which has spawned supply chain financial products.

In this regard the practice of the earlier is ICBC (601398, the process of supply chain financial services for Wal-Mart suppliers is as follows: After receiving the order from Wal-Mart, the supplier will submit an order financing application to ICBC, obtain financing and produce the products after the request of the company. Supply to Wal-Mart, and submit invoices, submitted to the ICBC, and so on, the bank can handle accounts receivable factoring financing, return their order financing. After the expiration of accounts receivable, Wal-Mart to pay the loan funds to the supplier in ICBC opened a special collection account, ICBC recover factoring financing. This innovative financing service was widely praised by the industry in 2006.

In other words, supply chain finance is not a new model, there are upstream and downstream supply cooperation companies in this area have a deep attempt. Especially in the traditional enterprises in the use of more common, such as Lenovo, Li Ning in this regard has been practiced.

The Electronic Business enterprise which takes Jing Dong as the representative is the retail enterprise, the supply chain mode and the offline retailing are not the two. And the electric dealer and wired under the retail does not have the advantage: All sales information flow is transparent, the supplier's transaction, the qualification and the prestige is completely controllable. Therefore, the electricity business enterprise uses the supply chain to do the finance article, appears to be logical.

For the supplier, he does not want to put more money on the goods, but hope that the flow of money, improve the turnover of funds, can use less money to do bigger business. Take Jingdong as an example, in the beginning, Jingdong quickly in the 3C field open the situation depends on the efficient supply chain management and short account period, quickly gathered a large number of suppliers. However, with the increasing size of Jingdong, the accounting period has inevitably become longer. And the sales of suppliers, which means more money on the goods, how to jump out of the shackles of this size?

Beijing Baori Letter Trading Co., Ltd. (hereinafter referred to as "Baori letter") is a medium-sized Beijing-east suppliers, mainly engaged in FMCG products. Take such a company for example, its monthly supply amount is 1 million yuan, the profit is 10%. If it delivers 4 times a month, 30-day billing period plus warehousing, settlement and other procedures, about 45 days to get the payment. In addition, there must be 2 weeks of safety inventory preparation, so that the theoretical capital occupancy of 2 million yuan, a year's profit of 1.2 million yuan, the return on capital is 60%. In such a capital chain, the larger the size of the supplier, the greater the amount of capital to occupy. How to do a larger business with smaller capital consumption? Liu Changhong, director of the Settlement center of Beijing East Finance Department, accepted the China Business newspaper (blog, micro-Bo), said the reporter, based on the supplier's capital turnover needs, Jingdong Mall and the bank cooperation, with the Beijing-East credit as collateral, from the bank to obtain credit, so that suppliers in the supply of goods quickly after delivery. The model is: To obtain the credit line of suppliers, the completion of the Beijing-East after the delivery can be reconciled with the BoE, check the correct, Jingdong to the Bank directive, the bank will be the amount of money in advance to the supplier settlement. For the date of payment, the capital will be returned to the bank, while the supplier is required to pay the bank's annual interest rate of 7%.

The supplier pays the interest, in exchange for the capital turnover efficiency. Take the above Baori letter for example, its one week delivery amount of 250,000 yuan, then get the payment, you can start to prepare the goods every week. Plus a week of safe stock, 500,000 yuan can complete the original 2 million Yuan business. After deducting interest, the profit is 1.13 million yuan, and the return on funds is 226%.

The system advantage of electric business platform

Combined with Internet technology, financial products are also more in line with the sales law of the platform of the electric business.

After Jing Dong, Su Ning also dabbled in finance to set up the small loan company. From the source, Su Ning and Alibaba, its source of funds are not banks, and jingdong supply chain finance is mainly the financing of banks. In this respect, Liu Changhong pointed out that Jingdong is a retail enterprise, goods flow and capital flow are in the hands of Jingdong, more controllable. So banks are willing to participate.

However, the electricity business enterprise dominates supply chain finance, it is easier to take some systematic means. Liu Changhong Introduction, Jingdong interface is with the bank docking, suppliers can apply in the Beijing-East background system, Jingdong supply chain Financial department has a team, they are a bit like the bank's account manager, is responsible for reviewing these applications, and prior to the supplier rating, set a credit limit. This rating is based on the supplier's historical sales data on the Jingdong system and the delivery settlement record. In this way, the lending speed will be very fast, and some half-day will be able to lend.

In contrast, Alibaba's financial business model adopted more systematic and technical. "Traditional credit requires a lot of human involvement and the cost of borrowing is high." As a result, small micro-enterprises are blocked out of credit. "Alibaba financial related person Grethou pointed out that Alibaba development microfinance technology, the introduction of the Internet, systematic operation, with technology instead of artificial, can serve the same time a large number of small micro-enterprises financing needs.

According to Grethou, Alibaba financial through the Aliyun, the day cat, Taobao data sharing, through the trading platform of data analysis of the merchant credit rating. Take credit loans as an example, to meet the credit rating of the merchant in Taobao can see the entrance of credit loans, at any time to apply for credit loans. Alibaba's financial operations over the past two years, the use of the most frequent loan merchants have made 400 loans. It is precisely because of the support of the system data, the financing of the merchant is very quick, instant application, instant to account.

This model is very suitable for some Taobao small sellers, Taobao department is a huge ecosystem, many individual sellers are unwilling to bulk stock, usually orders come, and then find some upstream suppliers to take goods (loans to take goods), buyers pay after payment, the advantage of microfinance is to day interest, fast.

"In addition to credit loans, use of shipped orders, can also apply for order loans." Sellers use a short period of one week, 3 months long, very flexible. But Grethou also pointed out that Taobao's credit line is not high, generally within 200,000 yuan. And for some of the big companies on the cat, Alibaba Finance also provides a larger amount of loans, this year, 2000 enterprises, has been awarded a limit of 10 million yuan credit.

Combined with Internet technology, financial products are also more in line with the sales law of the platform of the electric business. Electric business promotions often bring in centralized orders, and merchants need to stock up early or supply in time. At this time, fast and efficient loans for the merchants to solve the problem. "Double 11" before, Alibaba financial loan obviously increased. "Grethou said.

The battle for suppliers is just beginning.

Whether it is Alibaba finance, or Jingdong supply chain finance, is to create a supplier from the supply, sales, financing to the settlement of the closed loop, through this closed loop to the suppliers tightly.

Whether Alibaba, Jing Dong or Su Ning, its involvement in finance can obtain financial benefits, small loan company's income from interest, while Beijing East did not disclose the proportion of service charges, but in the future, it will become a source of income. At present, the more direct role of supply chain finance is to aggregate suppliers.

In the industry has been a pattern of jingdong and Taobao dispute. For suppliers, the Beijing-East model is the most criticized is the account period. In the Jingdong business is not like Taobao, after the merchant shipped, buyers as long as the payment, the purchase money can be on the merchant's account. Because of the issue of the account, a businessman has a high-profile exit from Beijing east.

Through the mode of supply chain finance, Jing Dong can just close the short board of the accounting period. Electric Business analyst Li Chengdong pointed out that the Beijing-East supply chain financial essence is to meet the needs of suppliers, the supplier bundled in Jingdong Mall. This is basically consistent with the microfinance logic of Taobao, and it can attract more suppliers in addition to binding existing suppliers.

An open shop in Taobao, but also to the supply of Jingdong merchants told reporters, in fact, they hope that each channel more balanced, rather than Taobao platform sales accounted for more than 80% of their sales. However, the current sales of Jingdong is not enough to allow themselves to spend more money and energy in the Beijing-east platform. If you can use a smaller amount of capital to achieve greater sales and faster capital turnover, they are willing to work more on the Beijing-east platform.

Suning set up a small loan company, the willingness to attract suppliers seems more obvious. The strategy of Suning is that "super electric" is the supplier of the non electrical appliances that it needs. Therefore, suning development of supply chain financial services, is conducive to speeding up the open platform to attract more non-electrical suppliers.

It is understood that at present, less than 1000 businesses have used Jingdong supply chain financial services, and the Beijing-east platform has more than 10,000 suppliers. At present, the Beijing-East supply chain financial services are targeted at the suppliers of proprietary goods. In the future, it will gradually expand to open platform merchants, and Jingdong also intends to set up a small loan company. Whether it is Alibaba finance, or Jingdong supply chain finance, is to create a supplier from the supply, sales, financing to the settlement of the closed loop, through this closed loop to the suppliers tightly. An increasingly obvious phenomenon is that a battle for suppliers is only just beginning.