A new, digital transformation and upgrading is taking place in all walks of life. In such a transformation and upgrading process, the pain points and problems that seemed to be unsolvable have new possibilities to solve. It not only revitalizes traditional industries, but also brings the development of traditional industries to a new stage.

The same is true for the energy and chemical industries.

When you think of the energy and chemical industry, the first thing that comes to mind is the small number of upstream head producers, the thousands of downstream distributors and the sheer size of the market itself. However, the energy and chemical industry has been hampered by upstream and downstream obstructions and poor circulation, making it difficult to operate efficiently. How to make the head manufacturer and the downstream distributor realize the perfect bridge, constantly activate their vitality, so that the energy and chemical industry operation more efficient, has become an important topic that every energy and chemical industry players must think about.

When the wave of digitalization comes, especially when the transformation of the energy and chemical industry by Internet players enters the deep water, those seemingly unsolvable pain points and problems, there are new solutions. Supply chain fintech is one of the most important representatives.

Under the transformation, energy and chemical industry need new solutions

The energy and chemical industry has always been a big industry related to the national economy and people’s livelihood. From food and clothing to aviation and aerospace, almost all of them have close connections with the energy and chemical industry. However, it is just such an important industry, but has been limited by its own industry, unable to achieve the real sense of change and upgrade.

In summary, the pain points of the energy and chemical industry mainly include the following aspects.

Digital degree is not high, upstream and downstream obstruction to be solved. For many energy and chemical enterprises, most of them are manufacturing enterprises, which focus more on the upstream production and manufacturing. As for the downstream processes and links of the energy and chemical industry, such as the sales mode of products and the transmission mode of finance, they are still traditional and obsolete. Even though some energy and chemical enterprises have carried out the Internet transformation, this transformation is still only limited to the transfer of sales channels from offline to online.

However, such a half-finished transformation can only be changed from the surface, and cannot really achieve a complete connection between the upstream and downstream of the industry. The operation efficiency of the energy and chemical industry is still quite low.

When the transformation of the Internet cannot bring more new changes, the development of the energy and chemical industry will still fall into a state of silence. Without a deep and comprehensive transformation of the energy and chemical industry, its upstream and downstream are still fragmented and its operational efficiency is still inefficient. Therefore, the energy and chemical industry will still appear products can not be sold, the re-purchase rate is not high, the customer loss is serious, supply and demand is not smooth, the activity is not high phenomenon. How to change these pain points and difficulties becomes the key to revitalize the energy and chemical industry.

Financial supply mode is single, difficult to meet the diversified demand. The unit price of energy and chemical industry is high, the types of users are complex, and the financial attribute is obvious. Therefore, the efficiency of financial supply is directly related to its operation efficiency. If the financial supply mode in the traditional sense is characterized by long cycle, complex and inefficient risk control and single financial categories, it will not only fail to meet the diversified needs of customers, but also greatly reduce the overall operating efficiency of the energy and chemical industry. Kuaisu, for example, has had problems lending only to large state-owned enterprises or listed companies in the upstream sector, while failing to lend to small factories in the downstream sector.

Through in-depth analysis of the reasons, it can be seen that the traditional financial supply model is still followed, the traditional financial model is still used, and the lack of digital means to support the development of energy and chemical industry is undoubtedly an important aspect. If the supply mode of finance does not change fundamentally, if the operation efficiency of finance is not improved, then the development efficiency of energy and chemical industry cannot be fundamentally improved.

In the context that the upstream and downstream of the energy and chemical industry have undergone profound changes, only by truly finding a matching financial supply mode, making finance a sharp tool to invigorate the energy and chemical industry, and making finance a mapp to drive the efficiency improvement of the energy and chemical industry, can we truly fundamentally solve the problem of low efficiency faced by the energy and chemical industry.

The ability of industrial integration is not strong, and it is difficult to achieve upstream and downstream collaboration. Observing the energy and chemical industry, it is not difficult to see that its processes and links are systematic, isolated and separated from each other. The producers are only in charge of production, and the distributors are only in charge of sales. The upstream and downstream of the energy and chemical industry are always in a state of independent development. Dawn is an enterprise that belongs to the energy and chemical industry circulation link. According to Dawn, the production of energy and chemical industry is mainly concentrated in a small number of leading enterprises. The distribution link includes tens of thousands of enterprises, such as Dawn. The downstream manufacturers are divided by more than 2 million enterprises, forming a relatively obvious pyramid of layers of dispersion.

Such a state leads to a decline in the efficiency of the entire industry and a lack of activity. If this problem can not be properly solved, the development of energy and chemical industry will always be in a stagnant state of development.

How to integrate the different processes and links of the energy and chemical industry together, so that the upstream and downstream promote each other, can really activate the backwater of the energy and chemical industry. This requires strong industry integration ability, especially the aggregation ability of supply chain. However, in the energy and chemical industry, there is a lack of “comprehensive players” who understand both industry and technology and can connect both upstream manufacturers and downstream distributors. Finally, the energy and chemical industry is always in a state of development in which each is fighting for itself.

In order to solve these pain points and problems in the energy and chemical industry, it is obviously not possible to make efforts only from one aspect. Only by making efforts from different angles and using a complete and practical solution that perfectly integrates industry and “infrastructure”, can the pain points and problems plaguing the energy and chemical industry be fundamentally solved, and the operation efficiency of the energy and chemical industry can be improved and its development can enter a new stage of development.

It is in this context that we see that more and more players begin to focus on supply chain fintech, because it is not only closely linked to the industry, but also has a strong technical reserve, because it can take into account both the internal industry and the external industry, to achieve a comprehensive and in-depth transformation. Through supply chain fintech, players are beginning to look for new solutions in the digital age to break the bottlenecks in the development of the energy and chemical industry. In this context, new solutions represented by JD supply chain fintech have become a new choice for more and more players in the energy and chemical industry.

Supply chain Fintech: A “New Antidote” for Energy and Chemical Industry

When supply chain fintech began to play more and more role in the process of cracking the pain points and problems in the energy and chemical industry, a new era began to open. In such a new stage of development, the energy and chemical industry has a new solution to the pain points and problems that could not be solved in the past, and a new antidote to the chronic diseases that beset the energy and chemical industry.

Therefore, we will not only ask, what is the magic of supply chain fintech, can be responsible for solving the pain points and problems of the energy and chemical industry?

Specifically speaking, it mainly includes the following aspects.

First, the supply chain fintech throughout the industry, understanding the industry, insight into the industry. In order to fundamentally solve the pain points and problems of the energy and chemical industry, it is certainly not possible to limit only certain aspects or certain processes. Only through the upstream and downstream of the industry, only truly connected with every process and link of the industry, only truly understand the industry, to know how to power.

Supply chain fintech has such a characteristic. On the one hand, it is closely connected with every process and link of the energy and chemical industry, so it can sense the pulse of the development of the industry in the first time, especially understand the pain points of the energy and chemical industry. On the other hand, it has a profound understanding of the energy and chemical industry, truly understands what the industry really needs and truly understands how to change the energy and chemical industry. The most important reason why energy and chemical industry players can join hands is the close relationship with the industry, long-term roots in the industry, have a deep understanding of the industry, especially can make up for the shortcomings of the energy and chemical industry, it can accurately perceive every pain point and problem in the energy and chemical industry, and can put forward targeted solutions.

Second, supply chain fintech, which understands both finance and technology. In addition to its close connection with the energy and chemical industry itself, another important reason why supply chain fintech has become a sharp tool to crack the pain points and problems of the energy and chemical industry is that it understands both finance and technology, and can find an effective way to cooperate with finance and technology.

We all know when the next deep integration of finance and technology is taking place. The gap between finance and science and technology is being further bridged. Now the fintech is no longer the simple addition of the two elements of finance and technology, but more in search of a new way and new method of deep integration of the two elements. In any case, finance and technology will eventually return to the supply chain, or return to the industry, in order to give full play to their own functions and roles. This is the real beauty of supply chain fintech.

Third, supply chain fintech can connect the upstream and downstream of the energy and chemical industries. Through the above analysis, we can clearly see that the energy and chemical industry has so many pain points and problems, to a large extent, because the upstream and downstream can not realize the real sense of connecting and bridging. When upstream and downstream obstruction begins, the operation of the energy chemical industry is bound to be inefficient. Therefore, to solve the pain points and problems of the energy and chemical industry, it is necessary to realize the upstream and downstream connectivity.

At this time, the role of supply chain fintech is highlighted again. For supply chain fintech players, it is this kind of connectivity that they are really building. With the help of supply chain fintech, whether it is digital connectivity, financial links or the breaking of barriers, the upstream and downstream of the energy and chemical industry is no longer isolated from each other, but has become a state of mutual cooperation and mutual promotion. It can be said that through supply chain fintech, we have found ways and methods to connect and bridge the upstream and downstream of the energy and chemical industry.

With such a connection, every process and link of the energy and chemical industry is no longer independent in a simple sense, but has become closely connected. With this as the beginning, the internal barriers of the energy and chemical industry began to be broken, the process of the energy and chemical industry began to be revitalized, and the vitality and efficiency of the energy and chemical industry began to be significantly improved.

Through analysis, it is not difficult to see that it is precisely because supply chain fintech, based on the three elements of the industrial chain, finance and technology, realizes the synergy and connectivity of the upstream and downstream of the energy and chemical industry and breaks the original barriers and obstacles, and supply chain fintech will become the antidote to the energy and chemical industry.

conclusion

The emergence of supply chain fintech provides a new solution to solve the pain points and problems in the energy and chemical industry. In the final analysis, it is determined by the fact that supply chain fintech understands both industry, finance and technology. Only in this way can supply chain fintech truly understand the pain points and problems of the industry and come up with targeted solutions.

For the energy and chemical industry, this undoubtedly opens a new path for its own development. With enterprises as examples, we have reason to believe that more players will join in the future, and the deep-seated problems of the energy and chemical industry have the possibility to be solved. So far, its development and evolution, will also take a solid step. And supply chain fintech, is undoubtedly the “catalyst” of this evolution.