Chain Finance

Engaging your supply chain to strengthen profitability, working capital and trading relationships.

THE COLLABORATIVE APPROACH

► A supplier financing program that puts finance in the center of procurement innovation and drives profitability, working capital and trading relationships improvements.
Cash flow optimized for all parties. Risks and costs lowered in the supply chain.
[find out all the benefits]

► A new win-win approach of large buyers with their suppliers becoming widely accepted as best practice. A buyer-led initiative that relieves buyer-supplier payment tension, by enabling both parties to set and get the terms they prefer.

► Collaborative Supply Chain Finance (C-SCF) is a way that large companies can use the strength of their balance sheet to arrange favorable financing for their suppliers in order to achieve mutual benefits for both trading partners.

► It creates the potential for buyers to extend their payment terms and/or to capture early payment discounts offered by suppliers, and for their suppliers to get paid earlier.
[find out how]

“Suppliers are vital to our business, and cash flow is as important to them as it is to us, especially in tougher economic times. We’ve launched a supplier financing programme designed to support the businesses that support us” ~ DIAGEO

THE TRADITIONAL BUYERS-SUPPLIERS APPROACH

► Old antagonistic arm wrestling approach and relationship where buyers simply squeeze the most advantageous terms out of their suppliers i.e. with long payment terms.

► A conflicting needs between buyers and suppliers. The former seek longer payment terms while the latter want faster cash flow.

► Supply chain model that necessitates a supplier to fund increasingly delayed payments is becoming a highly risky and costly model.
A very dangerous and damaging weapon in today’s economic and banking environment.
[find out why]

“When an organization looks to improve its working capital position at the expense of its suppliers, bad things happen usually. The fallout can be far more costly than the anticipated gains.” PI Social Media Network’s Procurement Insights Blog, Jon Hansen