Vonechain Technology Won “Innovative Case Award” Together with China Southern Power Grid & Lenovo in Facilitating Car Enterprise Upgrade
Recently, after going through preliminary trial, re-evaluation and field investigation, Beijing Jizai Digital Technology Research Institute and Jizai Digital Supply Chain Finance Think Tank Organization Expert had selected the winners of “Supply Chain Finance Application and Innovative Case 2021”.
Vonechain Technology’s case “Blockchain Facilitates Famous Car Enterprise to Achieve Supply Chain Finance Business Innovation” was selected on the list together with successful cases from famous enterprises such as China Southern Power Grid, Lenovo Group and won the “Supply Chain Finance Application and Innovative Case Award 2021”. The award recognition has fully shown Vonechain Technology’s outstanding achievement in facilitating supply chain finance application and innovation, while empowering supply chain finance upgrade and iteration.
Vonechain Technology case was selected on the list
Vonechain Technology Helps Car Company Achieving Business Innovation via Blockchain Empowerment in Supply Chain Finance
On 28th December, the Central Cyberspace Affairs Commission issued “14th Five-Year National Informatization Plan”. The plan states that:
Optimize furnish of supply chain finance in industrial chain, allocate financial resources to key sectors and weak phases of economic social development, achieve increment, expansion, improvement of quality and efficiency in different types of enterprises, especially financial services in private and small and micro enterprises.
Before that, “Report on The Work of The Government 2021” also mentioned about “Innovative Supply Chain Finance Service Model”, while the “National 14th Five-Year Plan” again raised issue regarding “Improve Modernization Level of Industrial and Supply Chain”. Thus, we can see that supply chain finance has risen to national strategy. As for how to ensure innovative development of supply chain finance and facilitate industrial chain upgrade, good industrial ecosphere construction also becomes an essential topic currently.
In traditional supply chain finance scenario, SMEs experiences difficulties such as credit with non-digital endorsement, credit difficulties, risk control difficulties in financial institutions, financing difficulties in enterprises, incomplete management of SMEs, nonstandard finance, loan difficulties and so on. Meanwhile, “information island” phenomenon occurred between enterprises also causes cash flow, information flow, logistics and business flow hard to unite, increase of cost and efficiency reduction.
In order to overcome difficulties in traditional supply chain finance, Vonechain Technology uses blockchain technology to combine with business characteristics and provide customized blockchain solutions.
Combining with sales pattern of traditional car manufacturing enterprises which emphasize on asset and marketing, Vonechain Technology supply chain finance team has established a financial service product that links car financing and leasing with dual circulation of supply chain finance specially for a domestic car company. This product has effectively utilized sales order and accounts payable of dealers to speed up in facilitating production order and vehicle inventory of OEM, while accelerating cash flow speed and capital turnover.
Via system reformation and connection with existing ERP system and financial system of car company to form full character, decision making and all online business line, Vonechain Technology’s product reduces duration of business data entry and decision making which require more than 40 days in actual to within 4 days. Hence, this has greatly increased efficiency, supported sales activities of market effectively and expanded market share. Meanwhile, linking enterprise directly with bank, speeding up in completing loan, clearing and settlement by effectively using bank account system and built-in clearing and settlement ability have made loan duration to reduce by T+1 and clearing process completed in T+0.
Practice is the sole criterion for testing truth. Vonechain Technology has obtained significant effect listed as below by providing supply chain finance business based on blockchain for the car enterprise:
- Achieve technology empowering real economy, reduce financing cost of upstream supplier, decrease purchasing cost of core enterprise, further improve positive development of industrial ecology;
- Fulfil actual financing requirement of supplier, greatly improve capital turnover efficiency of car dealers, at the same time also mitigate management difficulties of car factory;
- Construct supply chain finance system based on car dealers, car factory and car accessories supplier;
- Since started online operation, the platform has provided electronic receipt financing business service for more than 300 enterprises in industrial chain with total financing cost of more than 2 billion, thus in year 2020, annual company business has experienced sharp increase.
Conclusion
Under the background of rapid global digitization process, supply chain finance should also follow the step of digitization.
On September 2020, People’s Bank of China jointly issued “Opinions on Promoting Regulated Development of Supply Chain Finance in Support of Stable Circulation, Optimization and Upgrading of Supply Chain and Industrial Chain” with 8 ministries and commissions. This was the first framework document regarding supply chain finance development implemented in China, hence it also provides direction for supply chain finance development.
As a blockchain solution provider which studies in-depth in industry, Vonechain Technology has currently introduced self-researched and developed cloud credit supply chain finance platform, VoneCredit. This product aims to provide reliable financing services for multi-level supplier located at upstream of core enterprise, and its main financial products include multi-stage circulation product (cloud credit), factoring financing (cloud factoring), receipt financing (cloud receipt) and ABS business (cloud ABS). VoneCredit can be used to set up multi-party consortium trust system and value network consisted of financial institutions, industrial chain core enterprises, upstream and downstream chain enterprises, guarantor enterprises and so on. It helps to release credit transmission of core enterprise, clean up triangle debts between enterprises free of charge and replace part of cash reserves in order to ease financial pressure of SMEs, reduce capital settlement cost and financing cost of industrial chain, strengthen capital and asset circulation and facilitate positive development of the whole supply chain finance ecology.
Vonechain Technology will continue to conduct in-depth research on blockchain technology, provide high quality blockchain solutions for all industries, promote innovative development and establish credible digital economy.