Inner Mongolia Mengniu Dairy (Group) Co., Ltd. is founded in 1999. Taking advantage of the rapid economic development of the Inner Mongolia Autonomous Region and taking a free ride of the reform and opening-up policy, Mengniu has become the dairy company with the most rapid development, as the sales have increased by 1400 times within 18 years. In 2004, it was listed in Hong Kong and was the first stock in China’s dairy industry to be the constituent stock of the Hang Seng Index in 2014. COFCO Group, the biggest grains and oil food corporation in China, Danone in France, Arla Foods in Denmark are respectively the first, the second and the third major strategic shareholders of Mengniu. Mengniu ranked 10th among the global dairy companies in 2017. As the leading dairy supplier in China, Mengniu specializes in developing dairy products that are suitable for Chinese people and it has been listed as Top 20 companies in the global dairy industry in the successive nine years.
Mengniu, as the champion in the dairy industry, possesses characteristics of the traditional fast-moving consumer goods industry, which are high production speed, short turnover cycle, short shelf life, increasing homogenization, increasing stratification of customers and more and more apparent cost structure. Under the guidance of the vision of “customer-oriented, to be the centennial company of nutritious and healthy food driven by innovation”, the key to the transformation of the groups’ finance is to build an intelligent informatization platform the serves business and management to implement effective risk prevention, improve the efficiency of operation and facilitate the corporation to attain the goal of “two 100 billion”.
Against the times of business innovation driven by digital transformation and economic growth, Mengniu pursues the more convenient innovation, excellent experience and ubiquitous safety. Kingdee EAS helps Mengniu build up a global value-creating platform of fund management, realizing the legal cross-border flow of funds in the cash pool, data sharing of the corporation and sustainable operation of business in a closed loop to fulfill the purpose of resources shared by the group and provide high-quality and high-efficiency services of new finance, new management and the new platform, which supports Mengniu to realize digital transformation in the process of optimizing and upgrading the industrial structure.
The Financial Management Department of Mengniu keeps improving its own management ability and supporting the strategy of business development through financial transformation. In terms of fund management, it establishes the management mode of industry-finance integration and global treasurer of “1+4 capital pool, 6+12 direct linkage with bank”. The main characteristics of fund management are as follows:
1. Smart collection and payment Collection and payment are processed automatically in a completed closed loop, reducing the human input risk, increasing the efficiency of payment and improving the accuracy and connection to realize the integration of “business → capital → bank → finance”.
2. Smart digital receipt Mengniu realizes digitalization of receipts of ten banks. The corresponding receipts can be retrieved by receiving receipts, paying bills, swiping up or down the note. Receipts can be retrieved online in real time, reducing the workload of retrieving and matching receipts.
3. Smart consolidated cash flow statement The daily consolidated cash flow statement is made automatically after subjects beyond the consolidation scope are offset on the basis of daily collection and payment receipts, providing data support for strategic decisions made by leaders.
4. Online notes pool and digitalization of notes Mengniu builds up the online instruments pool and online instruments work can be operated anytime: in terms of digitalization of instruments, there is no need to check the instrument and the risk is reduced. There is a longer tenor and high par value, more benefits, high-speed flow and high-efficiency operation.
1. Globalized central clearing house Mengniu builds a global platform of fund management and sets up six central clearing houses including four in China and two abroad, realizing supervisory control of funds at home and abroad, fund pooling, payment and settlement.
2. Cross-border two-way Renminbi fund pool Mengniu builds up the cross-border two-way Renminbi fund pool, directly linked with 12 local banks and six banks abroad to realize the integration of domestic and foreign funds.
3. International letter of credit The international settlement of import and export business can be completed with the international letter of credit’s functions of online issuing, amending, downloading the arrival note, processing the note, acceptance and cashing.
4. Foreign exchange control The exchange rate board is provided for the clerks of international settlement to pay attention to the trend of foreign exchange rate for the better process of foreign exchange settlement and sale; as the staff at the finance center pay attention to the intermediate price released by PBOC every day, the system has the function of monitoring the exchange position and analyzing the exchange statement.
1. Investment and wealth management Investment and wealth management has been upgraded to online management from the initial manual registration, providing the basis for operational analysis and control and gradually realizing online operation and the daily management of investment and wealth management.
2. Developing the financial service in the industrial chain Mengniu provides small and micro clients in the value chain with online credit appraisal, online financing, online loan, connecting online shops and brick-and-mortar stores. In addition, financial business such as interbank business, credit business and lease financing is enlarged through finance companies to realize the integration of industry and finance.
Value of Customer
With legal high-efficiency management of cross-border flow of funds, Mengniu optimizes the allocation of funds around the world to support the strategic goal of “two 100 billion”. Kingdee facilitates Mengniu group to build up the smart management platform of global treasurers. With 12+6 global direct linkage and the smart receipt and payment mechanism, this platform completes more than 5,000 settlements with an automation rate of 99% every day and the annual amount of settlement funds exceeds RMB one trillion, with the concentration of fund reaching 99.6%. Through supervising the fund flow of member institutions in real time, pooling capital in regular time and internal reasonable adjustment, an effective capital pool is built; fund management service is provided for member institutions through sharing funds, building a high-efficiency capital channel; a fund floodgate is built by discovering fluctuating law of collection and payment and improving the management level of budget.