Supply Chain Finance
Decisions made by a corporate on its competitive strategy lead to a demand for certain competences in their supply chain. To obtain and secure these supply chain competences in the long run, there is a need for working capital throughout that supply chain. The supply chain finance strategy is fundamental in supporting the supply chains capabilities in meeting the corporate’s competitive strategy.
As a corporate or financial institution going through the initial phase of creating or revising your SCF Strategy (or high-level goal of your SCF project), you can leverage the expertise of Capital Chains throughout the various phases in implementing a SCF program. Every phase is self-contained and provides you with the opportunity to make a balanced go/no-go decision for the SCF implementation and further roll-out. The collaboration with Capital Chains is based upon a clear division of work and with different roles and responsibilities for each (sub)phase.
In the end, our approach facilitates a thorough analysis and solid basis for any (investment) decision. With this basis, we turn financial supply chains into value creators, which makes us Financial Game Changers.
Our Approach
Due to the multidisciplinary nature of SCF various departments are involved in the setup, implementation and execution of any SCF solution. To successfully implement a program, significant interaction and understanding between departments is essential, whereas top executive sponsoring of an SCF program significantly increases the probability of success.
A crucial element of setting up a SCF program is to segment your supplier base, determining which SCF solution should be offered to which suppliers and how. Based on an initial data dump of your ERP system, we will together create this overview which will serve as an indicator of the potential for the business case, as well as a guide for the later activities around the pilot suppliers during the implementation.
Imperative to a payable-centric SCF solution is having a P2P process in place that streamlines and optimizes purchasing and payment activities to enhance the visibility on the status of invoices and thus enabling fast approval times. During this phase, we use existing workflow descriptions to determine requirements for the SCF solution.
The value of your business case is determined by comparing the potential benefits to be gained in the coming years versus the costs to be incurred by implementing a SCF program. Although your suppliers are typically charged for the early financing opportunity, you have to setup the program and allocate resources in the process. Based on your envisioned value proposition for (prospective) suppliers, we will create a (high-level) business case to support the go//no-go decision for the next phase (SCF Provider Selection)
Together we will work on scope, system needs and other technical requirements to create a document outlining the details on the goal(s) of your programme and a full questionnaire for SCF solution providers. The RFP documentation is needed to assess the capabilities of the SCF solution providers and their strategic match with your core objectives.
During the tender phase, SCF solution providers have a chance to ask questions and further details. It is crucial during this phase to support the SCF solution providers in answering your RFP first time right. Together, we will determine the evaluation criteria and formulate a formal scoring method.
An initial evaluation will be done to check whether every request and requirement contained within the RFP documentation has been satisfactorily addressed. Following this initial check, we will create a full evaluation report, using the weighting of all the criteria and follow up with reference calls. The short-listed SCF solution providers will then be invited to a (scripted) demo-session in which they can showcase their solution. During these sessions, you will have a chance to ask for additional details and recommendations on their part.
When all the evaluations and demos have finished, it is time to make a final decision, typically supported by your procurement team. Our approach facilitates the thorough analysis and forms a solid basis for the final decision, but still it is you to make this decision!
Together with the SCF solution provider of choice, we will create the implementation roadmap: a detailed project plan containing the requirements, meetings and due dates until go-live. A dedicated project manager safeguard’s meeting the predetermined milestones and ensures optimal communication between all parties (including the various internal departments) involved.
The technical integration of the SCF offering is an important collaboration between your IT department and the SCF Solution provider, but the implementation goes far beyond just the IT side of things. The impact on your internal processes, in all the various departments, needs to be managed properly. Training and educating your staff (mostly your procurement department) is crucial for a successful implementation and consequent on-boarding of your suppliers.
Your supplier segmentation performed during the SCF Program Design phase, forms the basis of the decision-making process on which suppliers to include in the pilot. Which suppliers have reached out to you for future participation in a SCF program and to what extent is your SCF solution provider of choice capable of predicting the likelihood of a successful on-boarding of your top suppliers into your program. Lessons learned during this phase pave the way for a full-scale roll-out.
After the pilot phase, you proceed with an extensive roll-out to broader target segments to further drive benefits and increase the size of the program. Although the actual on-boarding is usually done by the SCF solution provider, you are still the main point of contact for suppliers! With a solid understanding of the market you are operating in, start moving towards future improvements of your SCF solution offering. Did we mention we can be of support in the latter?
Current SCF penetration rates in the market remain low, yet estimated market size and expected growth rates show significant potential for SCF globally. Based on data/trends in working capital financing needs in your target market, as well as the global economy, we create a high-level description of your SCF market opportunity.
As a financial institution or Fintech, you will need to support your clients (buyers) in segmenting their supplier base, to help formulate an effective SCF strategy aimed at value creation and/or operational excellence. Together we will determine value propositions that are based on your (prospective) clients’ needs and match these with your own long term strategic plans.
Depending on the choice in the IT component of the SCF offering (partnership or outsourcing) workflow proposals are created. Based on these workflow descriptions we determine organisational requirements for the SCF solution and involve all relevant departments from the beginning to determine specific requirements for the SCF solution provider of choice.
The value of your business case is determined by comparing the potential benefits to be gained in the coming years versus the costs to be incurred by implementing a SCF program. Based on refined market sizing data and the value proposition for (prospective) clients, we will create a (high-level) business case to support the go//no-go decision for the next phase (SCF Provider Selection)
Together we will work on scope, system needs and other technical requirements to create a document outlining the details on the goal(s) of your programme and a full questionnaire for SCF solution providers. The RFP documentation is needed to assess the capabilities of the SCF solution providers and their strategic match with your core objectives.
During the tender phase, SCF solution providers have a chance to ask questions and further details. It is crucial during this phase to support the SCF solution providers in answering your RFP first time right. Together, we will determine the evaluation criteria and formulate a formal scoring method.
An initial evaluation will be done to check whether every request and requirement contained within the RFP documentation has been satisfactorily addressed. Following this initial check, we will create a full evaluation report, using the weighting of all the criteria and follow up with reference calls. The short-listed SCF solution providers will then be invited to a (scripted) demo-session in which they can showcase their solution. During these sessions, you will have a chance to ask for additional details and recommendations on their part.
When all the evaluations and demos have finished, it is time to make a final decision, typically supported by your procurement team. Our approach facilitates the thorough analysis and forms a solid basis for the final decision, but still it is you to make this decision!
Together with the SCF solution provider of choice, we will create the implementation roadmap: a detailed project plan containing the requirements, meetings and due dates until go-live. A dedicated project manager safeguard’s meeting the predetermined milestones and ensures optimal communication between all parties (including the various internal departments) involved.
We do not support you in the technical integration of the SCF offering, but the implementation goes far beyond just the IT side of things. The impact on your staff, in all the various departments, needs to be managed properly. Training and educating your staff (including your commercial department) is crucial for a successful implementation and allows for a better result in the pilot as well as during business as usual.
Your value propositions were based on actual (prospective) client’s needs, now we want to turn these prospects into actual clients. Leverage our expertise in setting up SCF programs for corporates and use proven methods to create buy-in from all internal departments at the client (finance, procurement, legal and IT). Then work together with the client in identifying the low hanging fruit to pilot into the SCF program.
After the pilot phase, you proceed with an extensive roll-out to a broader target segment to further drive benefits and increase the size of the program. On-boarding more difficult clients (and their suppliers), and with a solid understanding of the market you are operating in, start moving towards future improvements of your SCF solution offering. Did we mention we can be of support in the latter?
Public Speaking
Public Speaking
With knowledge comes power, and with power comes great responsibility, hence we give presentations at conferences around the world to share our expertise and vision for the future. We believe that sharing information is key for growing the supply chain finance industry. Contact us if you are the organizer of an event or check our events for when we will appear next.
Feasibility Studies
ConsultancyFeasibility Studies
A complete report including our recommendations with next steps. Based on a thorough analysis of the internal and market requirements, an initial check of the proposed value propositions with market demands, and the creation of a high-level business case. All done in close collaboration with pre-identified staff from various roles in the organisation.
Project Management
ConsultancyProject Management
The Project Management Institute defines project management as “the application of knowledge, skills, tools and techniques to a broad range of activities in order to meet the requirements of a particular project.” This is what we propose to do for our clients when they initiate a project around improvements in the financial supply chain or the introduction of a SCF solution.
Supplier On-Boarding
ConsultancySupplier On-Boarding
Key to the success of any supply chain finance program is that suppliers are willing to join the program. We support the planning of the roll-out and directly engage the targeted suppliers, working alongside the procurement department to ensure an efficient deployment of resources. Our experience helps you delivering the right information to suppliers.
The Cool Connection
Training / LearningThe Cool Connection
The leading business simulation software that bridges the physical and financial supply chain to provide the ultimate knowledge experience while ensuring sustainable results for both young professionals and seasoned experts. Trainings with The Cool Connection range from four hours to multiple days over a period time. Click here for more details, or contact us to setup a demo.
Kingdom of Cash
Training / LearningKingdom of Cash
A Capital Chains label fully focused on the design and execution of tailor made training programs. Developing professionalism and effectiveness in finance and business professionals through integrated experiential learning, Kingdom of Cash program development can be focused around any and all of the following insights: business, team, finance, credit, and management.