Supplier Participation is Key to a Successful Supply Chain Finance Program

In order to realize the full benefits of a supply chain finance program your suppliers need to come on board and use it, according to the findings from participants at the recent Finance, Credit and International Business Association’s (FCIB) annual conference in Miami, FL.

A survey conducted by Beck Anderson Research of FCIB members at the conference, including suppliers who are often on the receiving end of supply chain finance programs, showed suppliers at the conference would be more likely to get involved if given a better understanding of the program. For example, as a buyer, supply chain finance programs can help a company optimize working capital. But if your suppliers can’t clearly see what’s in it for them, they may not participate and you’ll be left without an important component for a successful program.

The ability to bring suppliers to the table to help all parties understand and appreciate the benefits to be gained from a program is key to the success of a supply chain finance solution. This is called onboarding and is considered successful when the buyer can improve its working capital and a majority of suppliers use supply chain finance to receive early payment. Onboarding is an important step and customer experience is crucial to the process. For example, if the buyer implements a poor design and onboarding strategy, the risk is suppliers abandoning the process and damaging the relationship between the buyer and suppliers.

PrimeRevenue CEO, PJ Bain, who delivered a presentation at the event on supply chain finance and other alternatives to financing businesses purchases, commented, In order to improve their financial supply chain, corporations are reviewing best practices to move from a working capital optimization theory to practical initiatives resulting in superior financial performance while maintaining strong relationships with trading partners

Many of the leading, global corporations are successfully using PrimeRevenue’s platform to optimize their working capital. One of the key reasons why customers have chosen PrimeRevenue is due to smooth onboarding.

The PrimeRevenue Platform has two faces. The first is for internal procurement teams who need an understanding of the program to effectively communicate with their suppliers. The second is for suppliers to understand the process and value of the supply chain financing. PrimeRevenue is highly automated and user friendly, and accelerates the onboarding process.