To grasp the key to digital supply chain, digital supply chain finance, and digital supply chain management, it is necessary to first understand their fundamental meaning - the connotation of supply chain, and clarify the relationship between supply chain, supply chain finance, and supply chain management.
The supply chain is essentially a supply and demand chain, which not only considers supply but also demand. It refers to a chain composed of a series of supply and demand links from suppliers to customers.
Generally speaking, the digital supply chain consists of three streams: real logistics, capital flow, and information flow. Real logistics and capital flow form a completely closed loop, that is, using funds to purchase raw materials, converting raw materials into finished products, and converting finished products into funds through a "thrilling leap". A part of the converted funds is used to purchase raw materials, opening a new cycle. The continuous cycle from funds to physical goods, from physical goods to funds, is a very ideal state. However, when a company is not operating well or needs to expand its business, external funds need to be introduced. This activity of introducing external funds is called digital supply chain finance (also known as injection relative to fund providers).
The digital supply chain objectively exists, as long as there is a supply-demand connection with the outside world, it will form a supply chain. It does not exist because of its importance and does not exist if not valued. Of course, a supply chain that exists in a connected form will not consciously generate value and requires efforts from management. So, supply chain management emerged, which is a subjective effort made to enhance supply chain capabilities. It mainly focuses on optimizing one or a few links in the supply chain, and even the entire chain. The ideal state is end-to-end optimization of all supply and demand links from suppliers to customers.
The digital supply chain is universal, and enterprises that are connected to external supply and demand have their supply chain. To survive and develop better, enterprises should strive to manage their supply chain. Business operations must obtain resources from the outside world, and suppliers are the ones who supply resources to the enterprise. Supplier management is an important component of supply chain management. Funds are also resources that enterprises obtain from the outside world, and financial institutions are also suppliers to enterprises. However, in the current situation, fund suppliers are very strong.