Category: Transport and logistics
Highly-commended: Affiliated Hospital of Qingdao University
Summing up: Lower purchasing costs, reduced risks and easier access to cheaper finance created a multi-win supplier ecosystem for this large Chinese hospital.
What the judges said: “This programme has a very positive social impact as it reduces risks in the financial ecosystem of the hospital’s suppliers.”
- The Affiliated Hospital of Qingdao University worked in partnership with China CITIC Bank and Lino Information Service Co to launch a new SCF programme.
- The programme accelerated cash flow and at lower cost for suppliers, creating a sustainable ecosystem and safeguarding logistics management of time-critical medical supplies.
- Other benefits to the hospital included improved purchase prices.
The Affiliated Hospital of Qingdao University worked in partnership with China CITIC Bank and Lino Information Service Co to launch a new SCF programme called ‘Hospital Wisdom Supply Chain Finance’. The fully online service improved on the inefficiencies of traditional supply chain finance programmes.
The programme brought together big data analysis to address the risk control concerns of financial institutions thereby supporting the physical supply chain. Effective integration of the needs of industry and finance providers resolved suppliers’ financing difficulties, creating a multi-win situation and a sustainable ecosystem, safeguarding logistics management of time-critical medical supplies.
Suppliers of pharmaceuticals and other medical supplies were able to get access to finance at much cheaper cost – typically, at bank benchmark rates – as well as accelerated cash flow.
The hospital was able to optimise business processes as well as look after its own financial interests while simultaneously helping suppliers with their financial position. This helped improve relations between buyer and suppliers as well as enabling the hospital to get preferential supply prices.
Using the hospital’s strong reputation to reduce suppliers’ financing difficulties was an example of ‘public entrepreneurship and innovation’, enabling it to build value across the whole of the supply chain.