Our Consulting Services for “SCF Providers”
SCF-Provider
S·C·F-pro·vi·der /SCF abbr -prəˈvaɪ.dər/ 1 a company (e.g. financial institution, FinTech, supply chain platform, shipping or logistics company) that makes an SCF facility or solution available. 2 a company that provides SCF solutions. 3 a company that gives a needed/wanted SCF solution to the market.
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 and is gaining momentum across the globe. An increasing number of players have started exploring new, and continue providing existing, SCF solutions or SCF related offerings in this domain.
As an ‘SCF-provider’ 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 offering. 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 / Funding Partner 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 an SCF-providers’ readiness for implementing an SCF solution and can be used as a first step in the journey towards launching an SCF offering. We focus on four important areas for any successful SCF implementation by interviewing internal and external stakeholders and analyzing the market potential and -sizing. A hands-on report is provided identifying an SCF-providers’ internal and external challenges (As-Is vs. To-Be) accompanied by a high-level business case.
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SCF Strategy & Value Proposition
Defining an SCF Provider’s readiness for SCF starts with assessing its strategy and proposed value proposition. Is the envisioned SCF offering the right solution for achieving the Provider’s goals and if so, is the Provider in the right (financial) position to start offering this type of SCF solution?
Market Sizing
The market potential for the SCF solution is mainly defined by the clients targeted and their corresponding financing needs. Is the SCF Provider aware of its clients’ needs and to what extent does the proposed value proposition match these needs? What does the competitive landscape look like?
A crucial element of any SCF implementation is to have the right resources involved. Does the SCF Provider have the right level of senior commitment and is there a common, cross-departmental, understanding of the working of the proposed SCF solution? To raise understanding of SCF we offer standardized SCF training packages and modules.
Delivery / Operating Model
The SCF Provider’s readiness for SCF depends on the ability for plug and play implementation of the SCF solution(s) for the chosen delivery model. A major factor to take into consideration is the impact on the current IT infrastructure, and the effort to implement any required IT changes. Aside from IT, there are other factors to take into consideration such as: – does Sales have the right support tools? – legal environment and the ability to finance – state of the credit and risk management processes at the SCF Provider.
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. In-depth market insights substantiate the value proposition and ensure the creation of a match between the SCF Providers’ long-term strategy and its prospective clients’ needs. A hands-on delivery model is built based on the SCF-providers’ choice to partner or outsource the IT and funding component of the SCF offering. Based on the value proposition and a refined market sizing, the tangible business-case supports the go/no-go decision for the next phase, the SCF Technology/Funding partner selection.
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Market Sizing
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.
Value Proposition
As an SCF Provider, you will need to support your clients 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.
Delivery Model
Depending on the choice in the funding and IT component of the SCF offering (partnership or outsourcing) workflow proposals are created. Based on these workflow descriptions we determine organizational requirements for the SCF solution and involve all relevant departments from the beginning to determine specific requirements for the SCF Technology/Funding Partner of choice.
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. 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 Technology/Funding Partner Selection)
Capital Chains provides expertise with a proven methodology
SCF Technology/Funding Partner 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, funding and system needs, and other technical requirements to create a document outlining the details on the goal(s) of your offering and a full questionnaire for SCF Technology/Funding Partners. The RFP documentation is needed to assess the capabilities of the SCF Technology/Funding Partners and their strategic match with your core objectives.
Tender Phase
During the tender phase, SCF Technology/Funding Partners have a chance to ask questions and further details. It is crucial during this phase to support the SCF Technology/Funding Partners 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 Technology/Funding Partners 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 Partner
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 Partner 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-provider’s organizational and operational requirements with the SCF platform/funding configuration.
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Setup Project Planning
Together with the SCF Technology/Funding Partner 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 Provider
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.
Pilot SCF Adopters
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 SCF Adopters 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.
Go-Live
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?
Capital Chains accelerates the provision and adoption of SCF solutions
SCF On-boarding Support / Enablement
Key to the success of any SCF offering is that the market is willing to adopt your solution and suppliers are willing to join the program. The SCF On-boarding Support/Enablement phase offers hands-on support during the planning of the initial roll-out with SCF Adopters and later on while working alongside the internal departments at the SCF Adopter to (directly) engage the targeted suppliers. SCF Providers can leverage the expertise of Capital Chains to ensure an efficient deployment of resources with maximum uptake by SCF Adopters.
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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 Providers’ organizational readiness for the next step in SCF. We focus on four important areas, showing up-to-date insights on current SCF offering performance, -positioning, and -opportunities. A hands-on report is provided identifying an SCF Providers’ internal and external challenges (As-Is vs. To-Be) accompanied by a high-level business case.
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SCF Strategy & Value Proposition
Defining an SCF Provider’s readiness for SCF starts with assessing its strategy and proposed value proposition. Is the envisioned SCF offering the right solution for achieving the Provider’s goals and if so, is the Provider in the right (financial) position to start offering this type of SCF solution?
Market Sizing
The market potential for the SCF solution is mainly defined by the clients targeted and their corresponding financing needs. Is the SCF Provider aware of its clients’ needs and to what extent does the proposed value proposition match these needs? What does the competitive landscape look like?
A crucial element of any SCF implementation is to have the right resources involved. Does the SCF Provider have the right level of senior commitment and is there a common, cross-departmental, understanding of the working of the proposed SCF solution? To raise understanding of SCF we offer standardized SCF training packages and modules.
Delivery / Operating Model
The SCF Provider’s readiness for SCF depends on the ability for plug and play implementation of the SCF solution(s) for the chosen delivery model. A major factor to take into consideration is the impact on the current IT infrastructure, and the effort to implement any required IT changes. Aside from IT, there are other factors to take into consideration such as: – does Sales have the right support tools? – legal environment and the ability to finance – state of the credit and risk management processes at the SCF Provider.
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 provision 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 offerings to the next level of maturity.
