Supply Chain Finance

Transcription

1 Supply Chain Finance A Win-win Solution for Enterprises and Banks Sept.2012

2 Contents The Introduction of Supply Chain Finance A Comparison of Supply Chain Finance and Traditional Financing solution The Function of Supply Chain Finance The Supply Chain Finance of Bank of Communications Case studies and Innovative Services Envisaged 2

3 Ⅰ.Understanding of Supply Chain Finance from the Perspectives of Enterprises and Banks Individually Perspective of Enterprises The purpose of Supply Chain Finance is to coordinate the various nodes of the supply chain financing pattern and to avoid unexpected financial shortage. Based on Supply Chain Management Perspective Perspectives of of Banks Banks The supply chain is not only the capital flow, the product chain and the information chain, but also a credit chain. However, the credit level shows great difference among the nodes, and they affect each other. It is the extension and re-utilize of the high grade credit (core business)

4 Ⅱ.A A Comparison of Supply Chain Finance and Traditional Financing solution Traditional Finance Supply Chain Finance The credit permission assessment is in a simplified and single way. Focus on the assets and scales of enterprises. The contents and the requirements of the assessment are relatively fixed. The credit permission assessment focuses on the importance of the entire supply chain, the transaction history and the trade background with the core businesses.

5 Ⅲ. The Function of Supply Chain Finance The Supply Chain Finance is to integrate all resources on the chain of product-provide- sale ". It provides comprehensive financial services for both individual enterprises and the upstream and downstream companies on the supply chain to promote the steadiness and smoothness of the chain. To improve competitiveness of the core enterprises To make commercial banks reduce credit risk To solve the financing problems of f small and medium-sized enterprises Supply Chain Finance To promote the participation of third-party logistics services

6 第一部分交通银行简介 Ⅳ.The Supply Chain Finance of Bank of Communications Our History Founded in 1908 with a centuries-old history. The fifth largest commercial bank in China. China's first national joint-stock commercial bank. China's first commercial bank issued overseas IPO; Successfully recruit the domestic and foreign strategic investors such as HSBC, the Social Security Fund and the Central Huijin investment Ltd. The global partner of the 2010 Shanghai World Expo.

7 第一部分 Ⅳ.The 交通银行简介 The Supply Chain Finance of Bank of Communications Our Honors EUROMONEY Best Cash Management Bank in China MONEY TALKS Best Wealth Management Bank GLOBAL FINANCE Best Local SME financing bank Treasury the most potential bank of Cash management in China The Chinese Banker Best Wealth Management Bank WORLD BRAND LAB: Excellent Brand(NO.1 in bank industry) The global partner of the 2010 Shanghai World Expo.

8 Ⅳ.The Introduction of Supply Chain Finance of BOC BOC Schroder Fund Management Structure of the Integrated Financial Group A leading AUM Scale nationally BOC International Trust billion of assets entrusted BOC International Registered in HongKong BOC Financial Leasing 70 billion of financial leasing assets BoComm life Insurance A joint venture insurance institutions

9 Ⅳ.The Introduction of Supply Chain Finance of BOC More than 2600 sub-branches in about 150 cities in 30 provinces in China and more than 10 branches overseas London Branch Frankfurt Branch Ho Chi Minh Branch Singapore Branch Seoul Branch Overseas branches Taipei Representative Office Hong Kong Branch Macau Branch Sydney Branch San Francisco Branch New York Branch The network layout of Asia-Pacific being the main body with Europe and the United States as the two wings

10 Ⅳ.The Introduction of Supply Chain Finance of BOC World Expo Bureau Shanghai Disney China Commercial Aircraft Baosteel Group

11 Ⅳ.The Introduction of Supply Chain Finance of BOC Funds Scale Network Layout Client Resources Integrated Service Supply Chain Finance Service of BOC

12 Ⅳ.The Introduction of Supply Chain Finance of BOC 1.History The clients of Wuhan Branch BOC proposed the idea of financing their downstream distributors, which achieved good results after the actual operation of the branch BOC signed an overall pledged regulatory cooperation agreement with Sinotrans and introduced logistics supervision. It marks the entrance into a new period of rapid development for the supply chain finance business of BOC.

13 Ⅳ.The Introduction of Supply Chain Finance of BOC 2. Brand System Win To Fortune Supply Chain A new Supply Chain Finance brand covering all the business from upstream suppliers to the downstream distributors and end-users of the whole industrial chain Win To Fortune Supply Chain. Win To Fortune Supply Chain Finance Cash Management Corporate Finance management Investment Bank Win To Fortune Supply Chain is an independent sub-brand.

14 Ⅳ.The Introduction of Supply Chain Finance of BOC 3.Industry Coverage Port Shipping Auto Construction Coal Machinery Electronic Communications Professional Brand Building Significant Economic Benefits Medicine Iron and Steel Chemical industry Appliances Retail

15 Ⅳ.The 全产业链的产品覆盖 Introduction of Supply Chain Finance of BOC Upstream Suppliers Order Financing 4. Product Portfolio Order Delivery Acceptance Invoice Payment Core Corporate Order The deposits and withdrawals of funds service Notes Pool L/C Bank Acceptance Bill Factoring Delivery Storage and Transportation Pick up Goods Downstream Distributors A / R pledge financing Commercial acceptance bill discount Bank acceptance bill discount Receivables pool financing Factoring/ Domestic L/C Confirmed warehouse Manufacturers bank Corporate account overdrafts Commodity financing ng movable pool financing Coporatemortgage Individual mortgage Buyer's Credit Lease financing End- User

16 Ⅳ.The Introduction of Supply Chain Finance of BOC 5. Brand Value Support SMEs of the core corpoate on the supply chain Product-supply -sale Logistics Trade Flow Information Flow

17 Ⅳ.The Introduction of Supply Chain Finance of BOC 4. Risk control It has a complete product system and operation platform. With the support of the logistics monitoring platform, the credit insurance platform and the guarantees platform, the financing can be carried out by the business process of the corporate. It can also make personalized product portfolio according to the trade flow. Suppliers Bank Credit The design ideas of N Bank Credit Bank Credit End-user Core Corporate Vendor Bank Credit End-user

18 Ⅳ.The Introduction of Supply Chain Finance of BOC In the selection of China's Most Trusted Bank of the CFO Sponsored by CFO, BOC has wined the Best Supply Chain Finance Award for four consecutive years. The "Financial Solution of the Win To Fortune Supply Chain "is selected as Top Ten Financial Products of Financial Marketing by The Banker magazine.

19 5. Case Introduction of Supply Chain Finance Financial Solution for Automotive Supply Chain

20 5. Case Introduction of Supply Chain Finance Financial Solution for Automotive Supply Chain Order Order Order Order Order Order Order Order Delivery Delivery Delivery Delivery Delivery Delivery Delivery Delivery Acceptance Acceptance Acceptance Acceptance Acceptance Acceptance Acceptance Acceptance Invoice Invoice Invoice Invoice Invoice Invoice Invoice Invoice Payment Payment Payment Payment Payment Payment Payment Payment Order Order Order Order Order Order Order Order Delivery Delivery Delivery Delivery Delivery Delivery Delivery Delivery Storage Storage Storage Storage Storage Storage Storage Storage and and and and and and and and Transportation Transportation Transportation Transportation Transportation Transportation Transportation Transportation Pick Pick Pick Pick Pick Pick Pick Pick up up up up up up up up cars cars cars cars cars cars cars cars Auto finance companies Suppliers Aoto Manufactures Distributors The end-user

21 5. The Introduction of Innovative Services of Supply Chain Finance Innovative Services of Win To Fortune Supply Chain Finance

22 5. The Introduction of Innovative Services of Supply Chain Finance Seller Factoring Bank /Joint Bank (2) Receivables transferred/pledged Notice (1) Financing application of Transfer or Pledge of accounts receivable Hand-issue & Complicated operation Hand-deliver & Time-consuming Seller Traditional accounts receivable financing model Paper documents & Hard to file (3)Receivables transferred/pledged Notice (4)Receipt of Receivables Buyer Factoring Bank / Host Bank transferred/pledged Notice Buyer

23 5. The Introduction of Innovative Services of Supply Chain Finance (2)Batch upload the information of accounts payable (4)Give payment or E-bank acceptances Core Corporate BOC SCF Accounts Receivable +Cash +Bank Acceptances (1)E- order Minimum pledge rate Overflow fund (3)Financing Suppliers

24 5. The Introduction of Innovative Services of Supply Chain Finance The benefits of the electronic supply chain The electronic instructions such as commodity pledge, withdrawals and goods pick up are initiated by the corporate side. The bank conducts online approval and directly connects the COSCO Logistics warehousing system to realize the two-way electronic interaction of the pledge supervision, the delivery instructions and the involved bills. The system automatically makes approval and sends delivery notice when picking up goods. SMEs can conduct all the business in process such as goods pledge, financing application, financing restitution and commodity delivery without going to the bank. In addition to commodity finance, the electronic finance products such as the accounts receivable financing, the factor market financing are on the way.

25 5. The Introduction of Innovative Services of Supply Chain Finance A linkage of Domestic and Overseas Trade Financing Products Domestic and Overseas suppliers Domestic and Overseas distributors / end-users Domestic Factoring Business Pledge of Accounts Receivable Pledge of Movables Bill Financing Core Corporate Bill Purchased (B/P) Export Collection Export Invoice Financing Factoring Business

26 5. The Introduction of Innovative Services of Supply Chain Finance Information Platform Supply Chain Finance Innovation Envisage Product Funciton System Construction

27 Make Financial Solutions more flexible & Achieve Higher Value Mr. Shen Weidong Bank of Communications