Looking at the Transformation of the Logistics Industry from the Perspective of Supply Chain Finance

From the perspective of supply chain finance, Jack Ma announced investment in the construction of the "Cainiao Network" in the logistics industry. Some logistics companies have joined e-commerce, and logistics and e-commerce companies have started cross platform industry practices. We believe that the cross-border relationship between logistics and e-commerce has at least two levels of significance. From the first level, the cross-border interaction between logistics enterprises and e-commerce platforms is the integration of "logistics" and "information flow". At a deeper level, both logistics and e-commerce enterprises have a demand to control the "cash flow" of the supply chain through logistics and information systems.

The entry point of supply chain finance is to solve the financing problem of a large number of small and medium-sized enterprises

Small and medium-sized enterprises are crucial to China's current economic development, and the fundamental reason for their financing difficulties lies in the lack of risk assessment and control systems. The lack of a risk assessment system stems from the insufficient accumulation of historical credit information in enterprises, and the problem with the risk control system lies in the lack of real estate as collateral for loans in small and medium-sized enterprises.

Supply chain finance is an effective way for small and medium-sized enterprises to solve financing difficulties. By introducing the roles of logistics enterprises and information platforms, supply chain finance provides necessary transaction and logistics information for enterprise credit evaluation and risk control: the existence of transaction information provides a foundation for enterprise credit evaluation; The connection between core enterprises and the supply chain indirectly provides credit evaluation information for small and micro enterprises as upstream and downstream; The control of logistics information has introduced collateral for movable assets (orders, prepayments, accounts receivable, inventory, finished products, etc.) into the risk control system of financing.

Both logistics and e-commerce enterprises have the impulse to become the core of financial services

Logistics enterprises and e-commerce platforms participate in supply chain financial services with their core resources to gain a core position in the value chain. For logistics enterprises, their core resources lie in the mastery of "property rights". For e-commerce platforms, "information" is their core resource. Therefore, cross-border e-commerce and e-commerce integration logistics of logistics enterprises are their respective expansion of core resource scope, thereby covering more customers and service scope, and providing more in-depth supply chain financial services.

Cross industry practices in the logistics industry and e-commerce platforms

We analyzed the current practices of listed companies in the logistics, retail, and e-commerce industries participating in platform integration and supply chain financial services. Including the following companies: Sinotrans Development, Yiyatong, Ruimaotong, Zhongchu Group, Oupu Group (to be listed), Suning Yunshang, and Shanghai Ganglian. At present, the financial industry, e-commerce platforms, and logistics enterprises are interested in the supply chain finance market

Our exploration is still in the exploratory stage. We believe that the cross platform integration of e-commerce, logistics, banking, and the industry will be the trend in the future, and how various stakeholders play games to establish their core position and maximize benefits on the value chain still needs to be tested in practice. We will continue to pay attention to the transformation and transformation of the industry.