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.
We help create a vision and strategy, achieving a more effective utilization of the cash asset within the supply chain for your clients. It is a crucial phase in which (senior) management support can be created and opportunities can be identified. Based on the SCF strategy the first design of a blueprint for a supply chain finance offering can be created. Don’t know yet what to think of supply chain finance, check our training offerings to get up to speed.
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?