Our Consulting Services for “SCF Adopters”
SCF-Adopter
S·C·F-a·dop·ter /SCF abbr -əˈdɒptər/ 1 a person or company (e.g. corporates, large corporates) that starts to use SCF as a new product or service. 2 a person or company that chooses to take up, follow or use SCF solutions. 3 a person or company that chooses to bring their current SCF program to the next level of maturity.
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 (SCF) strategy is fundamental in supporting the supply chains capabilities in meeting the corporate’s competitive strategy.
As an ‘SCF-adopter’ 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. Together we accelerate your progress throughout the various phases in setting up, implementing, supporting/enabling the roll-out and improving your SCF program. The collaboration with Capital Chains is based upon a clear division of work and with different roles and responsibilities for each (sub)phase. Every phase is self-contained and provides you with the opportunity to make a balanced go/no-go decision.
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.
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SCF Readiness Quick Scan
SCF Program Design
SCF (Technology) Provider Selection
SCF Roll-out and Business Implementation
SCF On-boarding Support / Enablement
SCF Maturity Scan
Project Management and Support
Setting-up
Implementing and rolling-out
Improving
Next Step in SCF
SCF Readiness Quick Scan
The SCF Readiness Quick Scan is an assessment of the SCF-adopters’ organization’s readiness for implementing an SCF solution and can be used as a first step in the 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 Purchase-to-Pay [P2P] processes and supplier spend data. A hands-on report is provided identifying an SCF-adopters’ internal and external challenges (As-Is vs. To-Be) accompanied by a high-level business case.
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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’s objective. Based on the overall SCF strategy the internal team responsible for the implementation should be formed.
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
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.
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.
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)?
Partner Segmentation
Valuable insights can be obtained by analyzing the spend/sales data of a corporate buyer. For SCF, we utilize this data to perform the supplier/distributor segmentation. The segmentation allows the corporate to quickly identify the potential for an SCF program.
Ready to setup your own SCF project? Get in touch!
SCF Program Design
The SCF Program Design elaborates on the key findings of the SCF Readiness Quick Scan, giving in-depth insights and guidance on the creation of internal alignment, how to do your partner segmentation, and requirements for the purchase-to-pay [P2P] or order-to-cash [O2C] process optimization. The SCF Program Design phase provides a tangible business case and substantiates the foundation of a clear SCF strategy, which is crucial in successfully setting up an SCF program.
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Internal Alignment
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.
Partner Segmentation
A crucial element of setting up an SCF program is to segment your partners, determining which SCF solution should be offered to which partner 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 business case potential, as well as a guide for the later activities around the pilot partners during the implementation.
P2P Process
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.
Business Case
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.
Capital Chains provides expertise with a proven methodology
SCF Provider Selection
Based on the SCF strategy, there are considerations to be made regarding the selection criteria for the SCF solution provider of choice. Using our comprehensive selection methodology, the SCF Provider Selection process comes with an integral provider segmentation, providing the guidance needed in selecting the best matching partner going forward.
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RFP Document
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.
Tender Phase
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.
Evaluate / Demo
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.
SCF Provider
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 up to you to make this decision!
Capital Chains knows the industry players and their unique selling points
SCF Roll-out and Business Implementation
After an extensive SCF solution provider selection process, this phase is aimed at accelerating the implementation in collaboration with the various internal stakeholders. The SCF Roll-out and Business Implementation phase supports the matching of the SCF-adopter’s organizational and operational requirements with the SCF platform configuration.
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Setup Project Planning
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.
Implement at SCF Adopter
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.
Pilot Supply Chain Partner
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.
Go-Live
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?
Capital Chains accelerates the provision and adoption of SCF solutions
SCF On-boarding Support / Enablement
Key to the success of any SCF program is that suppliers are willing to join the program. The SCF On-boarding Support/Enablement phase offers hands-on support during the planning of the roll-out and while working alongside procurement departments to (directly) engage the targeted suppliers. SCF-adopters can leverage the expertise of Capital Chains to ensure an efficient deployment of resources with maximum uptake.
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Need help getting your supply chain partners to appreciate the value you are providing with SCF?
SCF Maturity Scan
The SCF Maturity Quick Scan reviews existing SCF solution(s) and/or explores the SCF-adopters’ organizational readiness for the next step in SCF. We focus on six important areas, showing up-to-date insights on current SCF program performance, -positioning, and -opportunities. A hands-on report is provided identifying an SCF-adopters’ internal and external challenges (As-Is vs. To-Be) accompanied by a high-level business case.
Navigating our services
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’s objective. Based on the overall SCF strategy the internal team responsible for the implementation should be formed.
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
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.
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.
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)?
Partner Segmentation
Valuable insights can be obtained by analyzing 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 an SCF program.
Exploring the next step in SCF? Team up with an expert!
SCF Project Management and Support
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”. Together we strive for the ultimate goal of accelerating the adoption of sustainable SCF models. Depending on the stage of your project, our offer extends from supporting the exploration of SCF offerings to the implementation of an SCF solution, bringing your SCF program to the next level of maturity.
