Like many companies, Electrical Components International’s (ECI) first introduction to supply chain finance was as a supplier. The company’s participation in a Fortune 500 customer’s program (led by PrimeRevenue) proved to be a lifeline during a global recession. Bogged down by slow customer payments and limited liquidity options, the company turned to its customers supply chain finance program to accelerate cash flow and access much-needed liquidity. Unlike many of its competitors, ECI was able to survive – and thrive – during economic downturn.
As the economy improved, ECI wanted to expand the benefits of supply chain finance across its organization as well as extend those same benefits to suppliers. The company turned to PrimeRevenue to implement its own supply chain finance program. Within the first few months, ECI has unlocked tens of millions of dollars trapped in its own supply chain and accelerated cash flow for many of its suppliers.
Key takeaways and results include:
- As a supplier, unlocked $25M in accounts receivables
- Within months of launching its own supply chain finance program, tapped into an additional $20M
- Improved payment visibility and eliminated discrepancies in invoicing, approvals and payments before they negatively impacted cash flow
- Accelerated cash flow for suppliers resulting in stronger supplier relationships