From 127 days to 60 days: How does the shortening of the billing period reshape the ecology of the electronic components industry?

1. Industry Pain Points: Ultra-long account periods were once a sword hanging over the heads of small and medium-sized suppliers

• The average bill period in the industry is as high as127 days, some even last as long as 150~180 days
• Distributors, agents, and small manufacturers generally rely onLoans, advances, property mortgagesmaintain turnover
• The risk of bad debts is high and capital costs eat up profits. A large number of companies are afraid to take orders and do not make money when taking orders.

2. For suppliers: Reduce burdens and extend life, shift from survival to development

1. Financial pressure drops off a cliff

   The repayment cycle is shortened, cash flow is significantly improved, and the company no longer relies on high-cost financing to maintain operations.
2. Operational risks are significantly reduced

   The probability of bad debts has decreased, and the company's ability to resist risks has increased, and it will no longer collapse due to a major customer's default.
3. Ability to invest in R&D and production expansion

   The return of funds is accelerating, and small and medium-sized manufacturers can invest more resources inNew product research and development, production capacity upgrade, quality control, no longer rely solely on low prices and volume to survive.

3. For core major manufacturers: bear pressure in the short term and strengthen supply chain resilience in the long term

• short term challenges

  The pace of capital occupation has become faster, financial management pressure has increased, and the extensive model of occupying supplier funds is unsustainable.
• Long term positive

  Payments are more standardized and suppliers are more willing to cooperate.Delivery is more stable, quality is more controllable, and the risk of supply interruption is reduced., which is conducive to stabilizing the long-term supply chain.

4. Industry structure: Accelerate the reshuffle and eliminate companies that rely on period arbitrage

• Depend onExtra long account period occupies fundsCompanies that maintain low-price competition will be forced to transform or exit.
• resource directionHealthy funds, efficient management, and strong technologyThe number of leading companies is concentrated, and the concentration of the industry is increasing.
• The phenomenon of bad money driving out good money has weakened, and the market has gradually returnedProduct strength, service strength, delivery strengthnormal competition.

5. Supply chain finance: giving birth to new models and revitalizing accounts receivable

• Tools such as accounts receivable financing, order financing, and inventory financing are becoming more popular
• Banks, platforms, and core enterprises jointly build more efficient financing channels
• The financing costs of small and medium-sized enterprises have dropped and the difficulty of financing has been reduced.

6. Long-term impact: The industry will move towards healthy, standardized and high-quality development

1. Business environment purification, the phenomenon of arrears and repudiation has been curbed
2. Establishment of integrity systemto promote long-term and stable cooperation
3. Improved innovation capabilities, suppliers have money to engage in research and development, and promote the acceleration of domestic substitution
4. The industrial chain is more stable, forming a virtuous cycle from upstream wafers and foundry to downstream distribution and complete machines