“As the first solution to address the real needs of the auto vehicle logistics ecosystem, Yun Lian Meng overcomes the pain points of the industry. It enables participants to upgrade from traditional practices, digitalise the supply chain, improve efficiency and deliver innovative supply chain financing services. In the future, the three parties will jointly explore more opportunities to improve the automotive industry and strive to build even smarter supply chain logistics.”
Zhu Guang Li, General Manager, BAIC CCL
BAIC CCL, also known as China Capital Logistics Co., Ltd, is a professional logistics company jointly established by the BAIC (Beijing Automotive Industry Holding Co. Ltd.) Group and Shougang Group in 2008 to provide auto parts logistics, auto vehicle transportation, international logistics, logistics finance, and integrated supply chain operations and management services for Beijing Benz, Beijing Hyundai, BJEV and the privately-owned brand of the BAIC Group. The company is rated as a 5A logistics enterprise.
Faster and easier online accounting reconciliation
Improved working capital cycle and cash flow
Greater security, efficiency and transparency
For many years, the automotive logistics industry has faced major challenges across its value chain. Multimodal transport, which has become increasingly common, has made it difficult for carriers to connect and cooperate with each other. Delivery of paper documents for transactions is costly, takes a long time, and critical documents can be lost or damaged. Moreover, each party regards its own data as its proprietary resource and is unwilling to share it. As a result, the lengthy accounts receivable and reconciliation process leaves the carriers, mostly small and medium-sized enterprises, with insufficient access to credit.
In collaboration with DBS, BAIC CCL developed a blockchain-based auto supply chain service platform called Yun Lian Meng. Leveraging cutting-edge technologies provided by Shanghai Wanxiang Blockchain Inc. (Wanxiang Blockchain), DBS became the first bank to launch such a platform for the automotive industry in China.
Yun Lian Meng enables all the participants along the entire value chain, including car manufacturers, exporters, logistics carriers and car dealerships, to access digitalised data about their order and delivery status in real time. Carriers receive and accept e-shipment orders directly on Yun Lian Meng. End customers such as dealerships can acknowledge the delivery order and log the delivery status once they receive the cars. All information posted on the blockchain platform is protected, accessible only by authorised parties.
Using Application Programming Interface technology, DBS integrated working capital financing on the platform. DBS evaluates and disburses trade financing to participants based on their digital data stored on Yun Lian Meng, thus removing the need for paper-based applications and supporting documents and shortening the credit approval process.
Yun Lian Meng successfully integrates logistics, settlement and supply chain finance for complete auto vehicle logistics into one seamless process. Without the need for paper documents that could go missing or get damaged, the participants on BAIC CCL’s supply chain network enjoy greater operational efficiency, cost savings and transparency.
Carriers now have direct access to the bank’s credit facilities, which provides them with lower-cost financing, improves their cash flow and reduces their working capital cycle by more than 90 days.
BAIC CCL, DBS and Wanxiang Blockchain have since further collaborated to roll out Yun Lian Meng across the industry.
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