Since Fusheng was founded in 1953, it has transformed from a small Taiwanese company to a regional manufacturing enterprise, taking root in China and various South-East Asian countries such as Malaysia, Thailand, Indonesia and Vietnam.
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The challenge
In recent years, the rapid growth of the domestic market in India has caused financial pressure. However, the local borrowing rate in India is as high as 7% or more, and some overseas suppliers, such as Fusheng group’s subsidiary in Shanghai, also have high lending rates. The group’s finance department has been struggling to find an affordable and efficient financial solution while coordinating the fund allocation of various subsidiaries.
Through supply chain financing, Fusheng can support suppliers with its own credit without affecting its cash level. However, traditional supply chain financing solutions are typically limited to domestic use in Taiwan, and the preparation of process documents is cumbersome, which may lead to additional workload for finance and accounting personnel.
The solution
CTBC Bank provided the company with the “Early Payment Project” in 2024, assisting with cheap overseas funds to support suppliers, contributing to the positive development of the group’s overall supply chain. It integrates high‑security financial components required by the Financial Supervisory Commission into the company’s existing ERP system, eliminating the need for cumbersome paper transaction documents and ensuring the security of information transmission.
Best practice and innovation
As a global compressor manufacturing group, Fusheng strives for excellence not only in external product services but also in internal financial management. The “Early Payment Project” provided by CTBC integrates financial components into Fusheng group’s existing ERP system, significantly improving the efficiency of cross‑border fund allocation. This solution adopts financial‑grade information security technology and distributed ledger protection to ensure transaction environment security, prevent hacking and leakage, and ensuring the security of enterprise ERP information.
It achieves information provision, reducing operational risks. The project chose the Indian plant as the first implementation site, and together with the CTBC team, obtained compliance in China, India and Taiwan, demonstrating the innovative ability to solve complex cross‑border financial problems.
This project has become an important milestone in deepening supply chain management for Fusheng group and will be promoted to other regions in the future, expanding the success model of digital innovation to various plants of the group.
Key benefits
Cost savings.
Process efficiencies.
Increased automation.
Risk mitigated.
Errors reduced.
Manual intervention reduced.
Improved key performance indicator (KPI) metrics.
Facing the uncertainty of international situations, through CTBC’s “Early Payment Project,” Fusheng can obtain additional sales discounts from suppliers without affecting its cash or financial liabilities. For suppliers, funds can be obtained on the same day after receiving digital information from the bank, significantly shortening the capital cycle, effectively reducing financing pressure and operational risks.
“Our image of supporting suppliers effectively enhances our corporate brand. This time, innovative cross‑border debt transfer and lending through Taiwan’s OBU branch significantly reduces group financing costs,” says Flora Huang, CFO.
Through CTBC’s leading financial technology, ERP information is directly connected to the bank, ensuring information not being delivered, improving financial operation efficiency and reducing operational risks. In the AI era, while pursuing digital innovation, the successful case of cooperation between the bank and the company’s internal finance department and IT team encourages internal innovation and achieves digital transformation goals.
This successful solution begun in the Indian market and will replicate the same model to subsidiaries in China, the United States and Germany in the future, creating additional benefits for the group.
Rio Li
Head of Digital Application Department II, CTBC Bank
CTBC Bank is honoured to collaborate with Fusheng Group in pioneering a digitally-driven transformation in supply chain finance, empowering more agile and efficient cross-border liquidity management. By integrating Fusheng’s deep operational insights with CTBC’s expertise in digital financial solutions, we co-developed an early payment programme that complies with multi-jurisdictional regulations and seamlessly connects with Fusheng’s ERP system. This partnership not only enhances Fusheng’s global cash management and supply chain resilience, but also sets a new benchmark for digitalisation and sustainability in the manufacturing sector. CTBC Bank is proud to be Fusheng’s long-term partner in financial innovation, and we look forward to continuing our journey together – advancing cross‑border fintech applications and shaping the future of corporate treasury management.
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