What is Collaborative Supply Chain Finance?
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
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.
Supply Chain Finance (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]
A supplier financing program that puts finance in the center of procurement innovation and drives profitability, working capital and trading relationships improvements.
Cash flow optimised for all parties. Risks and costs lowered in the supply chain.
[find out what are the benefits]
Oil & Gas
USD 2.7 billion
value of invoices managed