Treasury News Network

Learn & Share the latest News & Analysis in Corporate Treasury

  1. Home
  2. Financing
  3. Dynamic Discounting

Supply chain finance Europe barometer: screwing suppliers dominates why introduce

The joint survey in December 2016 SCF Barometer by Supply Chain Finance Community and PwC of 62 SCF solution users in Europe showed that (Source & Copyright©2017 - PwC ):

  • many different industries use SCF:
  • 57% of users have a revenues above $1bn
  • Reverse factoring was by far the most popular programme with bank operated solutions the main provider:
  • Main initiators of the SCF programme were treasury and CFO
  • Main implementation reason for the programme was WC optimisation for both practitioners and aspirants:
  • Strategic relationship and spend amounts were the keydrivers for supplier selection:
  • In 32% of cases, implementation took over 6 months
  • Supplier appetite, technology, and attractive commercial offerings are considered key factors in the success of SCF programmes:

Overall, most programmes were considered a success, even though SCF solutions covered a maximum of 40% of spend.


CTMfile take: Reverse factoring dominates, but sadly so does the WC optimisation reason for implementing SCF programmes. Looking after suppliers was less than half of the WC optimisation reason for implementing a SCF programme. Will large MNCs ever consider it appropriate to help all their suppliers?

Like this item? Get our Weekly Update newsletter. Subscribe today

Also see

Add a comment

New comment submissions are moderated.