Belgium-based ALRO Group knows a thing or two about thriving during economic ups and downs. A worldwide leader in its industry, ALRO provides surface treatment of plastic and metal automotive parts to some of the world’s top automotive luxury brands. In 2008, the company’s endurance was put to the test by the global financial crisis which pushed ALRO to looked for alternative sources of liquidity. A tightened cash flow situation was exacerbated by ALRO’s lengthy payment terms with their largest customers. Furthermore, tracking the status of invoices once they were sent to customers was also challenging.
Things changed when one of the company’s largest customers invited ALRO to participate in its supply chain finance program. The cash flow improvements generated by the program enabled ALRO to regain financial health curing a time of crisis, and continues to deliver these benefits today.
Key takeaways and results include:
- Payment now received 100 days early on average
- Has traded nearly €181M with an average of €80,000 per invoice
- Improved visibility into invoice approvals and payment certainty
- Reduced the time to fix invoice/invoice processing errors from months to days