SUPPLY CHAIN FINANCING MODEL created & utilized by Victure Industrial Co.-Blog-VICTURE INDUSTRIAL CO ., LIMITED

Blog SUPPLY CHAIN FINANCING MODEL created & utilized by Victure Industrial Co.

2021-03-04 01:03

As we at Victure Industrial Co. have expanded our business, we have reviewed opportunities with many new potential customers. In this process, we have encountered a large number of small businesses who have great product concepts, and great marketing plans, but insufficient knowledge of how to create and manage the supply chains that they need to cost effectively produce their products and support their customer requirements. Many of these small businesses also lack the financing required to scale-up production of their product(s) from the “prototype” and/or low-volume “product introduction” phases into the “mass production” phase.

Based on our observations, we saw an opportunity to provide a new service offering that would help these small businesses to establish appropriate, reliable, and cost-effective supply chains by combining our skills in supply chain management with our access to trade financing through banks and other institutions where we have well established relationships.

The graphic and the table below provide a high-level view of how our Supply Chain Financing Model functions:

Contractual Relationships:

Buying Entity and Manufacturer
Buying Entity and Supply Chain Company
Supply Chain Company and Manufacture

	RESPONSIBLE PARTY
HIGH LEVEL ACTIVITY	Buying Entity	Supply Chain Company	Manufacturer
Identification / Requirements Definition for products to be manufactured	Primary
Sales / Marketing / End Customer Service and Support	Primary
Sourcing / Identification of Manufacturer to provide required products	Primary	Support
Qualification / Verification of Manufacturer to provide required products (including detailed site visit and QMS review)		Primary
On-going Quality Assurance & Performance Management of Manufacturer (including outbound inspection as needed)		Primary
Setup / Secure Financing to pay for manufacturing and logistics costs for products to be manufactured for Buying Entity		Primary
Transmission of Order Requirements from Buying Entity to Manufacturer	Primary	Support
Receipt of Order Requirements from Buying Entity to Manufacturer		Support	Primary
Production of Order Requirements from Buying Entity to Manufacturer			Primary
Payment to Manufacturer for products manufactured for Buying Entity		Primary
Payment to Supply Chain Company for products manufactured for Buying Entity	Primary
Shipping / Export Arrangements and payments (including all Export Duties, Taxes, & Fees) for products made by Manufacturer and destined for Buying Entity		Primary
Import Arrangements and payments (including all Import Duties, Taxes, Fees) for products made by Manufacturer and destined for Buying Entity	Primary	Support
Shipping / Warehousing / Distribution Arrangements and payments for products made by Manufacturer from point of importation to end customer location(s).	Primary
Periodic (e.g. monthly) reviews of Buying Entity’s business results and on-going supply chain financing requirements.	Support	Primary

As of this writing, we have implemented this Supply Chain Financing Model with a handful of different customers, and the results so far have been very good for those customers as well as for Victure Industrial Co.

Given the success we have had thus far, we decided to publicize this Supply Chain Financing Model to a broader audience and to invite anyone who would like to learn more about how this Model can help them to grow their business to contact us as noted on our web site: http://victuregroup.com/contact/.

While you are visiting our web site, feel free to explore all of our other service offerings. You will find that we have a lot to offer.

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by Hina Jain