Disruptions to the supply chain have caused massive economic damage in the past couple of years.
Restrictions on global supply networks meant that the average country lost over $180 billion to supply chain disruptions while the U.S. lost $228 billion, according to a recent survey. However, these setbacks may also provide potential new opportunities as those both upstream and downstream in the supply chain seek new innovations. Some U.S. companies that managed to protect their supply chain despite global disruptions reportedly include technology company Cisco Systems Inc. and pharmaceutical company Johnson & Johnson.
Nisun International Enterprise Development Group Co. Ltd. NISN is one example of a company looking to fill the supply chain management vacuum.
Based in China, Nisun aims at a sophisticated supply chain integration (SCI) through an ecosystem that it reports is made to fulfill all the financial and logistical needs of partnering companies. It is seeking to solve the integration of industry and finance to create a supply chain system serving as an essential intermediary in both upstream and downstream transactions.
It also has the goal of helping small- to medium-sized enterprises (SMEs), which it says it accomplishes by providing SMEs with capital access through a closed-loop financial technology platform.
Linking Businesses For A Stronger Supply Chain
Nisun is focusing its partnership efforts in five industries: e-commerce, gold, coal, chemical and agriculture, aiming to create a network out of this $305 billion cluster.
The company seeks to provide collaborators with logistics and warehousing along with modernized financial services. One example of SME collaboration Nisun provides is with the merchants in the Henan Wanbang International Agricultural Product Logistics Park. Fintech (Shanghai) Supply Chain Management Co. Ltd (Fintech Digital,) a supply-chain management subsidiary of Nisun, serves agricultural merchants by providing them with financial and logistical solutions. The downstream merchants place purchase applications, which Fintech Digital then negotiates and fulfills with its network of upstream suppliers, ensuring quick response to merchant product needs.
Nisun also partnered with two companies to help with streamlining and digitizing the agricultural goods supply chain in late 2021. Through its partnerships with Sichuan Wanglianxing Agricultural Technology Development Co. Ltd. and Henan Xingyue Communication Technology Co. Ltd., Nisun hopes to bring its supply-chain expertise and resources to China’s National Rural Revitalization Program and modernization of the Chinese agricultural industry.
A subsidiary of Fintech Digital and a controlled affiliate of Nisan, Fanlunke Supply Chain Management (Shanghai) Co. Ltd. signed a deal with Yunnan Pinhutang Distillery Co. Ltd. which brings them into the Chinese medical market. This supply-chain and procurement contract, with the plan to expand to sales, hopes to maximize the upstream and downstream market trading and meet the greater demand for Pinhutang products, which are available on online stores such as JD.com Inc. and Alibaba Group Holding Ltd.
Through these strategic partnerships, Nisun may help produce solutions to the supply-chain crisis and make itself a bigger player in the supply chain. It claims its current success will continue into the future and maintain its 74% annual growth year on year.
Similar companies in the supply chain and fintech space include NETSOL Technologies NTWK, 360 DigiTech, Inc. (QFIN), Katapult Holdings KPLT and FinVolution Gr FINV
To learn more about Nisun, click here.
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Featured photo by Andy Li on Unsplash
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