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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