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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?

This item appears in the following sections:
Dynamic Discounting
Financing Short-Medium Term Deficits
Invoice Discounting & Securitization

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