SUPPLY CHAIN FINANCE SERVICES
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SUPPLY CHAIN FINANCE SERVICES

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SUPPLY CHAIN FINANCE SERVICES SUPPLY CHAIN FINANCE SERVICES Document Transcript

  • SUPPLY CHAIN FINANCE SERVICES Reinforce your supply chain and increase revenue and cash opportunities Over the past 18 months recessionary pressures and the global financial crisis have driven organisations to generate greater value from their suppliers and protect themselves in these rough times. Protection typically takes the form of rebates, discounts and payment term improvements to defend operational margins, decrease working capital and the need for bank lending. Supply chain financing provides an opportunity for the buying organisation to provide a financing facility to its supply base in exchange for a cost reduction or early payment fee. As such it allows the supplier access to vital funds at a preferable rate without extending their borrowing – a win-win for both parties. Atos Origin can help you realise the value lying untapped within your supply chain by giving you full command of the financing and payment process. Our Supply Chain Finance Services increase procurement savings, improve your cash flow, strengthen supplier relationships and protect your supply chain from disruption. www.atosorigin.co.uk
  • A UNIqUE bUSINESS modEL tHAt mAxImISES EARLY PAYmENt SAVINgS tHE ISSUE oUR SoLUtIoN The traditional buyer/supplier business model does a Atos Origin provides a complete end-to-end Supply Chain Finance (SCF) service disservice to both parties. Suppliers have to finance that brings together procurement power and financing in a unique business model. the period between an order being placed and the The solution combines our expertise in supply chain consultancy and management subsequent payment being received. Buyers tend with a web-based SCF platform that delivers dynamic discounting with highly to cede control to suppliers, who build the price of efficient transaction management. Buying organisations can capture discounts at financing the payment period into their costs. the point of payment and suppliers have full visibility of their invoices throughout the order-to-pay cycle. In harsh economic conditions these positions are exacerbated by the fact that credit lines to suppliers The diagram below shows our service components: either cost more or dry up altogether – which can pose » Analysis and supplier on-boarding: We offer the option of complete programme a serious threat to your supply chain. Meanwhile, buyers management including supplier segmentation, financial modelling, process design try to hold on to and conserve cash for as long as and implementation and supplier on-boarding possible, often by taking longer to pay their suppliers. » Fully managed SCF platform: Configured to support processes that drive Typical supply chain finance programmes deal with maximum value to the buyer and supplier, and managed and hosted in a secure this issue as part of a treasury function, the key data centre by industry leading experts question being the cost of financing the programme. » Payables and receivables-led programmes: Gives you the choice to decide how the programme is funded and its contractual relationships Twin-track approach » Supplier pull and buyer push models: To determine how you want to work The weakness of the traditional model is that the cost with individual suppliers, enabling some to control which invoices they request of financing early payments is a ‘standalone’ initiative early payment against and others to have all invoices settled early divorced from the procurement process. This approach » Flexible treatment of individual invoices: Identifies at a high level whether an limits benefits to the level of credit arbitrage available invoice is automatically settled early or presented as an option to the supplier. At a between the buying and supplying parties’ credit lower level variable transaction fees and payment timing restrictions can be applied ratings. A twin-track approach leverages the intelligence to individual invoices in your procurement function to add a premium to this » White label solution: You can self-brand the SCF programme according to your differential and deliver even greater financial benefits to corporate guidelines and requirements buyers whilst also offering a good deal to suppliers. » Flexible financing management: Provides the ability to fund the programme from multiple sources including your own treasury function. Until now, it has been virtually impossible to track and measure supplier discounts at the point of payment, let alone the discounts and payment times that apply to individual invoices. But that ability is the key to making sure each discount is captured and steered to a ring-fenced fund that is available to the business and which proves the procurement organisation is delivering on its savings promise. PRoCESS ANd SYStEm Platform and ERP Process Design Testing System Go-Live Configuration ANALYSIS Set Early Segmentation Financial Model Payment Fees Supplier On-boarding (Consultation) Supplier Engagement Activate Suppliers Live Operations Planning Supplier On-boarding (Remote) SUPPLIER oN-boARdINg
  • How It woRkS tHE bENEFItS Your buying organisation sends all approved invoices Perhaps most importantly, our SCF solution returns to Atos Origin via a simple and secure interface. They ownership of supplier relationships to the buying are then paid according to your instructions: organisation. And it does so not by imposing antagonistic restrictions but by delivering transparent » Buyer push: Paid immediately and automatically mutual benefits to both parties: against payment terms held on the SCF platform » Supplier pull: The invoice is presented to the For the buyer: supplier, who can then take early payment in return » Maximised cash flow: Vastly improved payment for a discount or decide when to take payment (still timing with the ability to lengthen trade credit earlier than normal or against standard terms). without negatively impacting suppliers The flexible Atos Origin » Increased procurement savings: Earlier payment business model allows Payment discount basis enables negotiation of better terms and conditions you to choose the way Early payment discount is based on when the actual with suppliers you want to pay for the payment is made. It is calculated using a daily early » Lower accounts payable processing cost: service, from transaction- discount rate which is multiplied by the number of Reduces disputes and time to resolve disputes by-transaction, margin days’ improvement the payment date represents through greater visibility of the order-to-pay cycle share or a variety of (e.g. a payment on Day 10 against Standard Payment » Stronger supplier relationships: Better other options. Terms of 60 Days represents a 50 Day improvement). relationships across the supplier organisation, from Invoices are settled net of the early payment discount. accounts receivable to relationship manager » Fair and inclusive: Supports suppliers regardless Procurement benefits capture of size to protect the entire supply chain. Using the payment process to track and capture » Improved corporate responsibility: Particularly negotiated procurement benefits is the key to preventing important to help smaller suppliers in tough budget holder re-spend. Our solution enables buyers economic times. to contribute to the ‘pay-back’ of the one time cash improvement it receives where trade creditors are For suppliers: pushed out (e.g. £50 million by moving from 30 to 60 » Reduced days sales outstanding: Provides days at an annual spend of £600 million). settlement much earlier in the order-to-pay cycle, which in turn provides Electronic invoicing » Improved working capital efficiency: Removes The platform provides an e-invoicing solution that the need to finance receivables and releases increases efficiency in the order-to-pay cycle, reduces working capital costs and promotes earlier supplier payment and » Lowers financing costs: Access to finance at higher early payment fees. lower cost than typically available by harnessing the buyer’s financial strength Pre-approval financing management » More competitive: Suppliers, particularly smaller This is an arrangement which gives suppliers the ones, can compete far more effectively when early option of requesting full or partial payment against payment is assured an order submitted to the SCF platform – and it » No integration effort or cost: Service is provided demonstrates just how flexible and helpful a buying via a web browser with no set-up or ongoing costs. organisation is willing to be with key suppliers. “As a procurement practitioner rarely do you see a solution that is truly win-win for the buy and supply side. All too often there is a compromise involved at some level. our end-to-end SCF programmes deliver numerous mutual benefits, all available on-screen 24-hours a day for real visibility and complete control for both sides. this is a new and exciting tool in the procurement armoury.” Andy Lees, Managing Partner, Atos Consulting
  • NExt StEPS If you would like to know more about Atos Origin’s Supply Chain Finance Services, please call 020 7830 4444, or visit www.atosorigin.com AboUt AtoS oRIgIN Atos Origin is a leading international information technology (IT) services company, providing hi-tech transactional services, consulting, systems integration and managed operations to deliver business outcomes globally. The company’s annual revenues are EUR 5.5 billion and it employs 50,000 people. Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and has a client base of international companies across all sectors. Atos Origin is quoted on the Paris Eurolist Market and trades as Atos Origin, Atos Worldline and Atos Consulting. CoNtACt US 4 Triton Square Regent’s Place London NW1 3HG United Kingdom Tel: 020 7830 4444 www.atosorigin.co.uk © 2010 Atos Origin IT Services UK Limited Atos, Atos and fish symbol, Atos Origin and fish symbol, Atos Consulting, and the fish symbol itself are www.atosorigin.co.uk registered trademarks of Atos Origin SA. 3052-0110 January 2010