Singapore, 5 November 2019 – YCH Group, Asia Pacific’s leading integrated end-to-end supply chain management and logistics partner signed a Memorandum of Understanding (MoU) with China Construction Bank (CCB) yesterday, to form a strategic collaborative relationship to capitalise on the Belt and Road Initiative by pursuing business opportunities in supply chain finance and investments in assets and infrastructure. The MoU was signed at the 2nd China-Singapore (Chongqing) Connectivity Initiative (CCI) Financial Summit in Chongqing, China.
There is now more focus on supply chain financing especially for small, medium enterprise (SMEs) as businesses recognised the need to look after their suppliers and the wider network so everyone can stay in business. The essence of supply chain finance is to focus on a core enterprise in the supply chain, and managing its upstream and downstream capital flow to grant credit to enterprises along the entire industrial chain. Henceforth, supply chain finance will transform the uncontrollable risk of a single enterprise into a controllable risk of the supply chain collectively. This aligns with the purpose of the MoU, with YCH being able to tap onto CCB’s expertise and resources to provide supply chain financing services, and also financial support needed for any infrastructure or business projects it is looking to establish in the China region.
“YCH has been driving a synergistic and efficient logistics and financial innovation ecosystem with the application of financial technologies to empower the new ILSTC, with initiatives such as YCH’s cross-border trucking service and our collaborative work with the Chongqing Banan District Government, Chongqing ASEAN International Logistics (CAIL) and Y3 Technologies. With this partnership with China Construction Bank, we are also poised to further capitalise on the rising China-ASEAN trade and will continue to grow our presence extensively and strengthened the trade connectivity between the two regions as we look to establish Chongqing as ASEAN’s logistics hub,” said Mr Shia Yew Peck, Chief Financial Officer of YCH Group.
The China-Singapore (Chongqing) Connectivity Initiative Financial Summit is the signature event under the Financial Services pillar of the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI), with this year’s focus on further developing opportunities for deeper financial collaboration between the two cities.
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About YCH Group
YCH Group is a leading homegrown, end-to-end supply chain solutions partner to some of the world's largest companies and favourite brands across the Asia Pacific region. YCH works across five distinct industries, from electronics and chemicals to consumer goods, always customizing solutions to suit its clients’ products. Due to the versatility, YCH is able to provide sophisticated management of its clients’ assets.
From establishing regional connectivity to setting up greenfield operations in emerging markets or expanding product scope, YCH’s robust distribution networks and innovative solutions offer compelling value to companies that desire to grow and scale across Asia and beyond. With deep-rooted understanding of local terrains and in-depth presence, YCH’s regional connectivity complements its wider range of specialised services. Its DistriParks and supply chain hubs are strategically located in more than 100 key cities across countries.
YCH is also working with partners in Vietnam and Philippines, to establish Smart Growth Centres as part of SGConnect™ (Smart Growth Connect), ASEAN Business Advisory Council’s (ASEAN-BAC) fifth Legacy Project. The Smart Growth Centres in Ho Chi Minh and Hanoi aims to be the supply chain hub for urban cities, that will distribute and manage a range of different products for the city population while reducing socio-economic issues by leveraging of technologies to maximise distribution efficiencies and quality.
YCH’s footprint is also strengthened with distribution development such as the China-ASEAN Regular Shuttle Service. This Chongqing to Singapore cross-border cargo transportation service was borne from the strategic partnership with Chongqing ASEAN International Logistics Co. Ltd (CAIL) and Chongqing Banan District Government, which started back in 2016, strengthening YCH’s expansive connectivity between the two countries. By establishing Singapore and Chonqqing as mutual hubs in ASEAN and Western China respectively, this fast and on-demand shuttle opens new opportunities to further promote trade between China and ASEAN region.
Productivity Through Innovation
Technology and innovation have always been embedded in the DNA of YCH’s business. With its mantra of “innovate to survive”, YCH launched Supply Chain City® (SCC) in 22 September 2017. Headquarters for YCH and located at heart of Jurong Innovation District in Singapore, the 2 million square-foot equivalent state-of-the-art facility serves as Asia’s supply chain nerve centre that aims to accelerate industry best practices, support Singapore growth as a leading logistics hub and set new industry standards in Asia Pacific. Through the unique LEARN™ ecosystem, YCH synergises various business activities and entities to create a dynamic and vibrant community, where ideas can be exchanged freely, and businesses, including YCH, are able to leverage one another’s strengths to innovate and grow.
SCC also features the world’s first patented FusionARIS® - a seamless fusion of an Automated Storage Retrieval System (ASRS) and ramp-up warehouse integrated solution - along with inventory-counting drones and advanced robotics such as AGVs (automated guided vehicles). The ASRS is the largest in the region, and the tallest at 50m in height.
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