The Endogenous Logic Of Supply Chain Finance Supporting Cross Border Business

In fact, in the industry, some platforms and service providers have begun to run exclusive business models based on their own advantages, but most of them can not escape the basic framework of business credit finance.

Differentiated enterprises based on credit models, a new global financial logic of cross-border supply chain, is cut out by spanaction.

Cut into the "four streams" of cross-border electricity supplier supply chain

With the popularity of cross-border electric business mode in Chinese consumers and business enterprises, the cross-border electricity supplier industry, which dominated by the large centralization platform, began to walk to the dispersed traffic era.

Billy, founder of cloud global sinks, believes that the dispersion of traffic is a major trend of the electricity supplier. This trend is obviously characterized by the gradual generation of all kinds of traffic gameplay, such as net red, MCN, social e-commerce and social electricity providers.

The more dispersed the traffic means, the greater the demand of cross-border e-commerce providers for cross-border supply chain services.

If the volume of traffic is concentrated on a few platforms, the demand for cross-border supply chain services will gradually narrow. For an oligopolistic platform with large volume, it can make its own overall supply chain.

But when the traffic becomes dispersed, the opportunity for integrated supply chain companies comes, because small B2C businesses are unlikely to build a cross-border supply chain system themselves, because they can serve all kinds of traffic platforms at the same time. Billy said.

The cross-border electricity supplier supply chain system covers four streams, namely information flow, business flow, logistics and capital flow. Billy believes that different cross border e-commerce supply chain service enterprises cut from the different directions of "four streams" to hatch the following different business models:

First, information flow. The information flow cut enterprises mainly appear in the form of serving small and medium B terminals. For example, upstream procurement tools, inventory management, OMS and other service providers. Information flow is an easy way for enterprises to cut into the cross-border electricity supplier supply chain, but the difficulty of this supply chain enterprise lies in how to establish a follow-up profit model.

Second, business flow. Business flows into enterprises mainly include general traders, brand agents and generation operators. For traders, the profit is low but the volume is large. For the generation operators, they have higher profits, but their agents have fewer brands.

Third, logistics. Now many enterprises are doing cross-border e-commerce logistics. There are many links involved, such as international logistics, domestic logistics, overseas warehouses, domestic warehouses and so on. The key point of logistics is how to standardize the service and do well in quality.

Fourth, capital flows. From the direction of capital flow, enterprises often need to match the first three streams together, focusing on the safety, speed and scale of the supply chain financial system.

In view of this "four streams", different supply chain enterprises have different choices, while the cloud global collects and aims at the way of "logistics + capital flow".

Endogenous logic of supply chain finance derived from trade in goods

Billy believes that the supply chain cut from logistics and capital flow is a rigid demand for B users of cross-border electricity providers. This is determined by the characteristics of the supply chain of the back end of cross-border e-commerce.

The first is the complexity of the supply chain: the whole chain of goods from overseas factories to consumers is very long and needs to go through intermediate links such as overseas traders, supply chain companies, domestic traders, and e-commerce platforms.

The second is the mode of capital spanfer: the cross-border procurement of overseas e-business involves a large amount of overseas payment (including advance payment and first payment). When the whole cross-border electricity supplier supply chain cycle is too long, the pressure of capital spanfer will increase.

At present, the cross-border electricity supplier supply chain is divided into three links: the upper, middle and lower reaches, and each link takes a long time. Under such a long supply chain cycle, both small and medium-sized B businesses or upstream suppliers have greater financial pressure. This also provides the necessity for the cross border supply chain finance.

Billy pointed out that at present, the main products of cross border e-commerce industry are fast moving products, but the risk of supply chain finance for fast moving products is not easy to control. Mainly in the following aspects: first, the assessment is difficult. The SKU of FMCG is very large. There are different specifications, models and so on. So the price evaluation system of FMCG is very difficult to do. Second, the shelf life is short. The general shelf life is 12 to 36 months, and the change of shelf life will cause the price to fall and raise the risk of unsalable sales. It will be very troublesome if it is over 90 days in the pledge period. Disposal channels, once a default occurs, we need to deal with the pledge commodities, and the risk of financial channels without disposal channels will be very large.

In view of the current situation of cross border e-commerce supply chain finance industry, the practice of Sino global sinks is directly involved in the middle of the spanaction, helping merchants who have the ability to sell goods to solve the capital problems in the spanaction process.

Billy emphasizes that the supply chain finance mode of the global cloud exchange only needs to evaluate the goods and control the right of proceeds, so that the whole financing loan can be completed.

In this supply chain finance mode, the global cloud has established three capabilities: first, "estimate accurately", that is, to evaluate the goods; second, "to see through" means to build a complete system of logistics, warehousing, payment and overseas account opening, which is enough to support its business; and third, "sell off" means that it can integrate many platforms with sales capability and sell goods quickly when goods and commodities are available.

Industry division of labor is clear, focusing only on industry "high speed access".

The global financial system of cross border supply chain based on goods trading also reflects its support for a clear division of business value.

Billy tells the billion power that the global cloud sink will not do its own C side traffic. The electricity supplier link can be divided into three sections: traffic, operation and supply chain. "Some professional institutions mainly do traffic, such as gathering social networking platform to integrate small and medium B businesses and service systems. The operation company focuses on category operations and new product mining and planting grass, while the cloud global sinks focuses on supply chain ecology. In the future Internet system, the division of labor will become clearer and clearer, and every enterprise will focus on their professional fields.

And those closer to the C end users of the corresponding enterprises, Billy believes that the cloud global sinks should invest resources in warehousing, logistics and finance. In particular, finance itself is a high barrier industry, which involves deep ploughing in the supply chain system and wind control system.

Because of these barriers, it is difficult for ordinary cross-border enterprises to build a cross-border supply chain financial system. The global cloud exchange has the foundation of trading when it was first established. But early entry into the trading market is very burning money, so many cross-border enterprises generally do not start trading at the beginning.

"Financial barriers are too high, and many supply chain enterprises without previous accumulation can not go on. The total amount of the loan is almost 1 billion yuan per month, and there are not many companies that can do that. Billy said.

Because there is no cut into spanactions, these companies engaged in cross border supply chain finance do not assess the capacity of goods. This also means that when there is a situation of abandonment, such enterprises can not handle the goods. Supply chain finance is a very risky business for them.

"Global cloud is building the" highway "of cross-border industries. For cross-border businesses that meet the rules of the platform, they can get the support of cross border expressway. Billy describes the role of cloud global in the cross-border electricity supplier link to the billion power.