According to a statement released by the China national development office on February 3, although the current protective clothing and N95 mask are still in a "tight balance" state, the production capacity of the N95 mask has been more than doubled, raw materials prepared and production increased.

On the basis of nationwide mobilization, the industrial system is recovering, greatly changing the problem of material shortage a few days ago.

"At the beginning of the second year of the year, we were still worried about the production of masks. The capacity of 15,000 masks a day could not meet the market demand. In addition to the Spring Festival staff holiday, raw material prices rise, how to quickly expand capacity has become the company's urgent problem to solve.

However, as the company was listed as a backbone enterprise for real-name management, the situation improved after raw materials from other provinces were coordinated and capital flows were replenished. "The official said.

What is the financial logic behind the speeded up production of masks?

"With the entry of the government and all parties in the market, the value of supply chain finance is highlighted and its role is being played." In the opinion of Chen xiangfeng, director of international supply chain finance research center of fudan university, from the perspective of supply chain finance, the production of masks includes capital flow, information flow, material flow and service flow.

Supply chain finance is broken

How to resolve the "difficult to obtain" situation through supply chain finance?

"In the short term, the price of raw materials has risen, the wages of employees starting the Spring Festival have doubled, and many raw materials need to be purchased from other provincial producers. Supply chains are not smooth or even interrupted, which has become the key to reducing the supply efficiency and failing to meet the market." Said the above business leaders.

Changyuan city, henan province, where the company is located, ranks the first of China's three David material base, with more than 70 eisai enterprises, more than 2,000 enterprises, usually accounting for more than 50% of the national market sales. According to the official website of changyuan market supervision and administration bureau, eisai's total production capacity is 1.05 million surgical masks per day, 35,000 protective masks per day and 560,000 disposable surgical masks.

However, how to integrate upstream and downstream enterprises, capital, short-term capacity breakthrough and other issues, become the confusion of enterprises. According to Chen xiangfeng's analysis, "from the perspective of supply chain of mask production, there are 'three more', that is, multi-flow, multi-organization and multi-function. Multi-flow refers to information, raw materials, finance and other flow organizations; Multi-organization refers to many suppliers, distributors, buyers, etc. "Muti_function means that there are many functions attached to the mask itself, such as procurement, manufacturing, research and development, logistics and so on."

In addition, some people engaged in the production of medical supplies said in the interview, "the daily supply of masks is relatively stable, once the demand of the downstream enterprises to the upstream fluctuations, it will cause financial constraints and other problems.

In this regard, Chen xiangfeng proposed that in the mask production process, the flow rate in the "three multiple" is actually the core factor to solve the production capacity problem of the mask, namely capital flow, information flow, material flow and personnel flow. "Because of the sudden outbreak of the disease, enterprises need to solve the price rise of raw materials, difficult to purchase and other problems, this is the problem of capital flow and material flow. There is also the information flow problem of local information amplification. It is worth noting that the logistics inconvenience caused during the Spring Festival and the problem of doubling the salary of employees have resulted in the problem of service flow, which is not a problem to be considered in the supply chain finance in the past. How to adapt to the situation needs to be optimized from a global perspective."

Among many flow problems, the flow of capital determines the flow of materials, information and services. February 1, the ministry of finance of the people's bank of China, silver insurance regulatory commission, securities regulatory commission (CSRC), safe and other five ministries jointly issued "on further strengthening the financial support for prevention and control of new coronavirus pneumonia outbreak notice," the production, transportation and sale of outbreak response using one of the important medical supplies, and supplies important backbone enterprises make and manage the list. The central bank provides low-cost funds to financial institutions through special re-lending, and supports financial institutions in providing preferential rate credit support to listed enterprises. The central government will provide discount interest support to key enterprises for epidemic prevention and control."

"The real-name management system for key enterprises has released two advantages. The other is to solve the problem of information flow. The upstream enterprises can accurately understand the demand of the downstream enterprises for masks, so they can produce the masks on demand. In particular, the unified allocation mechanism enables the flow of raw materials between different provinces, and breaks down the financial barriers in the supply chain." "Mr. Chen said.

"After we were included in the real-name management system of key enterprises, we all borrowed money from financial institutions in the form of network supply chain loans, which saved a lot of time and enabled us to complete the transfer of accounts receivable and loan in less than one day." Said the head of the above enterprise.

Under the convergence of various forces, supply chain finance also plays the role of "lubricant". Tian yulong, chief engineer of the ministry of industry and information technology, said at a press conference held by the state administration of industry and information technology on February 3 that the NDRC had increased production and supply of face masks in response to the difficulty in buying them, ensuring a daily supply of more than 20 million. Among them, the N95 mask organization has doubled its capacity.

"For this outbreak, supply chain finance has been used as a financial tool, and its value has been highlighted and amplified. At the same time, the healthy operation of enterprises is also the reflection of supply chain finance feeding enterprises."

Value beyond financing services

With the production capacity of masks by domestic enterprises peaking, many logistics enterprises and cross-border e-commerce enterprises are also voluntarily importing to guarantee supply.

"The more immediate problem is how to speed up overseas logistics operations," the head of a logistics company told reporters. Logistics occupies an important delivery link in the whole commodity trading process, connecting the upstream and downstream of the supply chain. "We provide financial services in the supply chain based on logistics services and logistics production, which greatly improves the efficiency of each link."

So, how to speed up logistics through "logistics + supply chain finance"? The transaction data that the person in charge of logistics company shows to the reporter shows, supply chain finance gives great convenience in foreign exchange settlement, it only takes 10 minutes to smoothly transact 1 purchase and pay foreign exchange business, the amount of which is 120,000 us dollars, among which, 70,000 N95 masks and 50,000 surgical masks are purchased. At the same time, the central branch of the local administration of foreign exchange has also opened a green channel, offering free remittance service to enterprises and providing timely feedback on payment receipts to facilitate enterprises to confirm orders.

The person in charge of the logistics company told reporters that the logistics company through the supply chain finance, can provide order financing, advance financing, inventory financing, accounts receivable financing a set of chain financing. "We get involved in the supply chain finance through our finance companies, factoring companies and small loan companies, and build a supply chain finance service platform based on the industrial chain by relying on our advantages in industrial chain and information flow, so as to facilitate one-stop financial channels."

"Supply chain finance is not only a financing service, but also includes financing, payment, settlement, insurance, guarantee, tax refund, foreign exchange management and financial management services. Its essence is that supply chain finance and 'goods' are closely linked." "Previously, we investigated more than 2,000 Shanghai and shenzhen stock market companies, among which more than 380 provide supply chain finance services. It can be said that supply chain finance still has a long way to go in the future."

Chen xiangfeng believes that supply chain finance can be an effective tool to connect entities and finance in the future. This is also the specific embodiment of the financial service entity and the return of finance to its original source. "The involvement of supply chain finance in this outbreak also provides a new perspective for enterprise management. The new value created by supply chain finance can turn the services that combine finance with enterprises and logistics into new services. In the future, finance, logistics and information flow can be considered together in the whole business model, so as to generate a new model and create a new format of supply chain finance in the new model."

Source: China business network