This is the second post in a series about the VALUES that drive PrimeRevenue’s business – Performance, Respect, Innovation, Diversity, Excellence and Integrity. Read my first post here.
Bruce Lee once said: “Knowledge will give you power, but character respect.” PrimeRevenue’s character as a company is built on respect – walk the halls in any of our global offices and you’ll see it in the way we interact with one another and our customers.
Another place you’ll see respect in action is in the way we help our clients build, run and grow their supply chain finance programs. Respect isn’t limited to people – we have enormous respect for what we do and how it intersects with our clients’ strategic goals.
So, what does that look like in practice?
Capturing the Full Value of Supply Chain Finance
Most supply chain finance providers focus solely on buyer benefits. But when a program is designed from a buyer and a supplier perspective, both sides can capture the full value of supply chain finance.
We respect the potential of our clients and will do everything in our power to enable them to meet their goals – suppliers included. Supply chain finance provides suppliers a debt-free, low-cost way to finance growth so they can focus on expanding their businesses. Even better, the financing rate associated with supply chain finance is typically a fraction of what suppliers would pay for a commercial loan.
Our experience shows that suppliers are more than ready to participate in a program that’s been designed with their needs and wants in mind – one that would enable them to get paid early and have improve payment visibility and cash flow. Shawn Reniker, EVP of Operations of Woodstream, commented on his program: “Suppliers were so eager to participate that they were ready to trade before the program was fully implemented.”
Another example of a supplier reaping the benefits of supply chain finance is Kiddyum, a maker of children’s frozen meals based in the UK. After signing a deal with Sainsbury’s (one of the UK’s largest supermarket chains), Kiddyum’s founder Jayne Hynes had a choice – either grow her production capabilities to meet the customer’s demand or lose a pivotal business opportunity. Participating in Sainsbury’s supply chain finance program provided Kiddyum with the working capital to pay for production, warehousing and distribution costs. As a result, Sainsbury’s got an amazing new product and Kiddyum has since expanded to several other multi-national grocery chains.
Understanding That Every Party – From Buyers to Suppliers of All Sizes – Contributes to a Successful Supply Chain Finance Program
The age-old phrase “a chain is no stronger than its weakest link” holds true for many aspects of life, business included. Now more than ever, buyers need their suppliers to be successful, innovative and competitive. Transformation is driving significant change across the supply chain and all parties need to be responsive.
But options for funding strategic growth and innovation initiatives can be limited for many suppliers. Traditional supply chain finance programs target only the largest, most strategic suppliers. Unlike other providers, we understand that each supplier relationship is strategic and every supplier adds value and receives value from supply chain finance.
That’s why we work with our clients to build programs that delve deeper into the supply chain. We extend supply chain finance all the way to tail suppliers, which allows our clients to unlock the most cash flow gain possible in a way that is beneficial to all suppliers – not just those with the most spend.
Respect has always been ingrained in PrimeRevenue’s culture. But as we close out 2019 with strong growth and record cash flow gains for our clients, it’s apparent now more than ever how the respect we incorporate into every aspect of our business has been instrumental in helping us and our clients accomplish amazing transformations – now and for years to come.