Supply chain finance Europe barometer: screwing suppliers dominates why introduce
by Kylene Casanova
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?
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