Supply Chain Finance Business Model Innovation: Case Study on a Chinese E-Commerce-Centered SCF Adopter
Abstract
:1. Introduction
1.1. Background
1.2. Research Aims
- RQ1: Does the business model innovation benefit from JD SCF’s practice keep sustainable strategic development?
- RQ2: How does JD SCF practice acquire a long-lasting competitive advantage in the financial providing market (consider the influence of business model innovation)?
1.3. Paper Layout
2. Theoretical Background
2.1. Supply Chain Finance (SCF)
2.2. Financial “Blue Ocean” Market
2.3. Business Model Innovation
3. Methodology
3.1. Research Framework
3.2. Case Selection
3.3. Analysis Techniques (Models) Preparation
3.3.1. Business Model Canvas (BMC) Analysis
3.3.2. Financial Analysis
3.4. Data Collection
4. Case Study
4.1. Case Description
4.2. BMC Analysis
4.2.1. Value Proposition
4.2.2. Customer Relationship
4.2.3. Channels
4.2.4. Customer Segmentation
4.2.5. Revenue Structure
4.2.6. Key Resource
4.2.7. Key Activities
4.2.8. Key Partners
4.2.9. Cost Structure
4.3. Financial Analysis
4.3.1. Net Revenue and GMV
4.3.2. Liquidity: Inventory and Accounts Payable
4.3.3. Profits Related to SCF Practice
5. Case Discussion
5.1. Does the Business Model Innovation Benefit from JD SCF Practice Keeping Sustainable Strategic Development?
5.2. How JD SCF Practice Acquires a Long-Lasting Competitive Advantage in the Financial Providing Market (Consider the Influence of Business Model Innovation)
5.2.1. Before Business Model Innovation, JDF (October 2012~June 2017): Cost Advantage Based on Accounts Payable Turnover Days
5.2.2. First-Time Business Model Innovation, JDD (July 2017~January 2021): Differentiation Advantage Based on the Business Expansion to “T2F”, “T2B” and “T2G”
5.2.3. Second-Time Business Model Innovation, JDT (February 2021~Present): Focused Strategy Based on “Technology + Industry + Understanding”
6. Conclusions
Author Contributions
Funding
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | Increase 2021 vs. 2020 | |
---|---|---|---|---|---|---|---|---|
Asia | 55 | 71 | 99 | 128 | 168 | 227 | 324 | 43% |
Africa | 5 | 7 | 11 | 12 | 16 | 21 | 29 | 40% |
Europe | 100 | 135 | 162 | 203 | 257 | 337 | 455 | 35% |
America | 170 | 235 | 290 | 400 | 530 | 726 | 995 | 37% |
TOTAL | 330 | 448 | 562 | 743 | 971 | 1311 | 1803 | 38% |
Scope | Selected Representative References | Definition Quotes (Exemplary) |
---|---|---|
optimization | Camerinelli [21], Supply Chain Finance Community [20] | “SCF benefits capital flows optimization and liquidity value modification by offering various products or services to facilitate the management of physical and information flows by financial institutions in the SC” [21]. |
integration | Pfohl and Gomm [22] | “SCF as the inner-company optimization of financing through integrating financing processes with customers, suppliers, and service providers to increase the value of all participating companies” [22]. |
cost reduction | Petr et al. [23], Omran et al. [5] | “SCF is an interesting approach used by many focal firms to optimize the flows and allocation of financial resources in the supply chain, leading to higher profits and cost reduction in company financing” [5]. |
value creation | Hofmann [25], Walters [24], Wuttke et al. [26] | “SCF is an approach for two or more organizations in a SC, including external service providers, to jointly create value through means of planning, steering, and controlling the flow of financial resources on an inter-organizational level” [25]. |
ecological system/model | C. S. Lin and Lin [8], Shen et al. [1], C.-Y. Lin [27] | “The SCF ecosystem is a fresh type of financial provider that has the potential to make the SC more efficient by offering cheaper prices or credit to SMEs in the system” [8]. |
SC risk management | X. Chen et al. [6], X. Zhao et al. [28] | “SCF necessitates financial institutions to carry out a thorough assessment of SCF clients, taking into account the risk dimensions, the environmental dimension, and the operational dimension” [28]. |
financial technology | Fellenz et al. [29], Soni et al. [30] | “Financial technology (FinTech) innovation has also contributed to the adoption of SCF by delivering financial services using information technologies (IT) and simplifying loan and transaction processes for SMEs” [30]. |
global supply chain network | X. Wan and Qie [32], Carnovale et al. [31] | “In the global SC network, SCF platforms have become an important means of precise poverty alleviation” [32]. |
2014 | 2016 | 2017 | 2018 | 2019 | 2020 | |
---|---|---|---|---|---|---|
Suppliers | ≥7200 | ≥12,000 | ≥15,000 | ≥19,000 | ≥24,000 | ≥30,000 |
Third-party merchants | ≥60,000 | ≥120,000 | ≥170,000 | ≥210,000 | ≥270,000 | ≥300,000 |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
---|---|---|---|---|---|---|---|---|---|
Annual Active Customer Accounts | 29.3 | 47.4 | 96.6 | 155 | 226.6 | 292.5 | 305.3 | 362 | 471.9 |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
---|---|---|---|---|---|---|---|---|---|---|
Net Revenue | 41.38 | 69.34 | 115 | 181.3 | 258.3 | 362.3 | 462 | 576.9 | 745.8 | 951.6 |
GMV | 73.3 | 125.5 | 242.5 | 590.6 | 939.2 | 1294.5 | 1676.9 | 2085.4 | 2612.5 | 3334.8 |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
---|---|---|---|---|---|---|---|---|---|---|
Inventories | 4.75 | 6.39 | 12.19 | 20.54 | 28.91 | 41.7 | 44.03 | 57.93 | 58.93 | 75.60 |
Inventory Annual Turnover Days | 34.1 | 34.2 | 34.8 | 36.4 | 37.6 | 38.1 | 37.3 | 35.8 | 33.3 | 30.3 |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
---|---|---|---|---|---|---|---|---|---|---|
Accounts Payable | 8.10 | 11.02 | 16.41 | 31.20 | 46.01 | 74.36 | 80.07 | 90.42 | 106.53 | 140.51 |
Annual Accounts Payable Days | 42.5 | 42.2 | 40.9 | 44.0 | 52.0 | 60.3 | 58.1 | 54.5 | 47.1 | 45.3 |
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
---|---|---|---|---|---|---|
Interest income in relation to nonrecourse securitization debt charged to JD Digits (JDD) | 26.02 | 371.58 | 702.15 | 527.03 | 37.65 | - |
Interest income in relation to loans provided to JD Digits (JDD) | 85.7 | 161.6 | 569.4 | 119.05 | 40.63 | 31.01 |
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Zhou, L.; Lee, H. Supply Chain Finance Business Model Innovation: Case Study on a Chinese E-Commerce-Centered SCF Adopter. Systems 2023, 11, 278. https://doi.org/10.3390/systems11060278
Zhou L, Lee H. Supply Chain Finance Business Model Innovation: Case Study on a Chinese E-Commerce-Centered SCF Adopter. Systems. 2023; 11(6):278. https://doi.org/10.3390/systems11060278
Chicago/Turabian StyleZhou, Lele, and Hyangsook Lee. 2023. "Supply Chain Finance Business Model Innovation: Case Study on a Chinese E-Commerce-Centered SCF Adopter" Systems 11, no. 6: 278. https://doi.org/10.3390/systems11060278