Why do state-owned enterprises establish supply chain companies? [State owned Enterprise Supply Chain Report Seriation] (1)

China is currently facing the dilemma of shrinking demand and weakening expectations, and state-owned enterprises must take the lead in stabilizing the economy and expectations. However, currently state-owned supply chain companies also face many challenges in their business operations, such as a lack of business, personnel, and risk control experience.

To address the above issues, initiated by the Internet of China, entrepreneurs and experts with practical experience within the ecosystem have collaborated to compile the "High Quality Development Report of Local State owned Enterprise Supply Chain Companies -" Digitization+Supply Chain+Finance "Promoting Local Industrial Ecological Development (hereinafter referred to as the" State owned Enterprise Supply Chain Report ") in April 2023, focusing on the implementation of the" Digitization+Supply Chain+Finance "model by local state-owned enterprises.

Chapter 1

Local state-owned enterprise supply chain company

Challenges and feasible solutions

1、 The reform of state-owned enterprises continues to deepen, and local state-owned enterprises need to further enhance their core competitiveness

At the Third Plenary Session of the 18th Central Committee of the Communist Party of China, the focus was on capital management to strengthen the supervision of state-owned assets. The subsequent "1+N policy system" and "three-year action" of state-owned enterprise reform spared no effort to promote the improvement of the competitiveness, innovation, control, influence, and risk resistance of the state-owned economy. As of the end of the three-year action this year, good results have been achieved, especially in the reform of central enterprises. But there are still more local state-owned enterprises on the road of exploration, with a long way to go.

On March 16th, the Party Committee of the State owned Assets Supervision and Administration Commission of the State Council published a signed article on the People's Forum titled "Experience Summary and Future Prospects of the Three Year Action of State owned Enterprise Reform": "State owned assets and state-owned enterprises will fully implement the spirit of the 20th National Congress of the Communist Party of China and the deployment of the Central Economic Work Conference, with a focus on improving the core competitiveness and strengthening core functions of enterprises." It can be seen that the reform of state-owned enterprises has entered a deep water zone, From emphasizing the competitiveness of the state-owned economy to emphasizing the core competitiveness of enterprises.

The first journal of the State owned Assets Supervision and Administration Report in 2023 published a signed article by Yuan Ye, a member of the Party Committee and deputy director of the State owned Assets Supervision and Administration Commission, titled "Optimizing the Central Enterprise Business Indicator System to Accelerate the Implementation of High Quality Development", which authoritatively analyzed the optimized and adjusted "One Profit, Five Rates" business indicator system for central enterprises and the annual "One Increase, One Stability, and Four Improvements" business goals for 2023: total profit, asset liability ratio (emphasizing blind expansion under constraints) The investment intensity of research and development funds (emphasizing the resolution of bottleneck issues and chain breakage risks), total labor productivity (emphasizing employees' value creation ability), operating cash ratio (emphasizing cash flow, requiring profitable income and cash profits), and return on equity (emphasizing increasing the governance efforts of loss-making enterprises). Zhang Yuzhuo, Secretary of the Party Committee of the State owned Assets Supervision and Administration Commission of the State Council, stated at the meeting of State owned Assets Supervision and Administration Commission leaders at the beginning of the year, "Local State owned Assets Supervision and Administration Commissions can refer to and learn from (one profit and five rates)

2、 Establishing supply chain companies in local state-owned enterprises is beneficial for improving resource allocation and enhancing core competitiveness

In recent years, local state-owned enterprises have established supply chain management service companies (hereinafter referred to as supply chain companies) to actively respond to the previous "demand contraction, weakening expectations, and supply shocks", and improve resource allocation capabilities. Inefficient investment creates demand in the current period, but suppresses demand in the long term. So the key to enhancing core competitiveness is to improve the ability to allocate resources. On the one hand, state-owned enterprises need to improve their own input and output of resources, and on the other hand, they need to open up excess resources to more suitable ones

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The article is sourced from the Internet of Things

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