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SCF Readiness Quick Scan for Corporates2018-05-25T09:50:41+00:00

SCF Readiness Quick-Scan for Corporates

The SCF Readiness Quick Scan for Corporates is an assessment of a corporate organization’s readiness for implementing an SCF solution and can be used as a first step in a corporates’ journey towards launching an SCF program. We focus on six important areas for any successful SCF implementation by interviewing internal and external stakeholders and analyzing the various P2P processes and supplier spend data.

The main benefits of the SCF Readiness Quick Scan

Due to our structured approach we are able to complete the Quick Scan in a timeframe of only one week. The collaboration with Capital Chains is based upon a clear division of work and with different roles and responsibilities per building block of our approach.

The Quick Scan defines the main challenges and risks for the envisioned SCF implementation. It not only indicates how much effort an implementation will take, but more importantly it enables the buyer to anticipate on these main challenges and risks beforehand avoiding problems down the road and ensuring a successful implementation.

Lessons learned: the Quick Scan often indicates that the level of awareness around SCF within the organization could be improved, which can be achieved by organizing specific trainings or workshops before progressing with next steps. A companywide (common) understanding of the SCF offering reduces the design and implementation duration, while increasing its effectiveness significantly.

The final outcome of the SCF Readiness Quick Scan is a high-level business case. The business case is determined by comparing the potential benefits to be gained in the coming years versus the costs to be incurred by implementing the SCF program. Presenting it internally results in buy-in from senior management and serves as a solid basis for the investment decision to run a full SCF program design and implementation project.

Supply Chain Finance - Readiness Quick Scan - Corporate
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The six elements of the Quick Scan

SCF Strategy icon

SCF Strategy

SCF Strategy

For a corporate to be ready for any SCF implementation, it is crucial that there is a clearly defined objective and that the SCF instrument to be used is in line with the corporate objective. Based on the overall SCF strategy the internal team responsible for the implementation should be formed.

Internal Alignment icon

Internal Alignment

Internal Alignment

The SCF implementation team needs to be formed out of people from the various departments involved and at a minimum should include representatives from: procurement / treasury / finance & accounting / legal / it. Executive sponsorship is crucial as this determines the likelihood that needed resources (people and budget) will be committed to the project.

P2P Process icon

P2P Process

P2P Process

Approved invoices are a vehicle to leverage a buyer’s credit worthiness and are therefore a key element of most SCF solutions. The less time it takes for the buyer to approve invoices, the larger its suppliers’ trading window until the due date of the invoices is. That is why it is important to assess the capability of the buyer’s internal processes to handle and approve invoices within a short timeframe.

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IT Impact

IT Impact

The corporates’ readiness for SCF depends on the ability for plug and play implementation of the SCF solution(s). A major factor to take into consideration is the impact on the current IT infrastructure, and the effort to implement any required IT changes.

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KPIs

KPIs

In order to keep track of the SCF program results and whether the objective is being reached, it is important to use KPIs. Are the right KPIs in place to support the roll out of the program (and are these KPIs not directly conflicting with the overall objective)?

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Supplier Segmentation

Supplier Segmentation

Valuable insights can be obtained by analysing the spend data of a corporate buyer. For SCF, we utilize this data to perform the supplier segmentation. The supplier segmentation allows the corporate to quickly identify the potential for a SCF program.

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