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Upgrading SCF: case study

3 MIN READ
Oct 26, 2024

For many corporates, supply chain finance ("SCF") fails to live up to its potential.

Corporate treasurers and CFOs tell us about underutilization, limitations on the scope of programs, and a lack of transparency.

A large, global corporate is upgrading their existing SCF program - read this 3 minute case study.

PrimaTrade provides a smart and streamlined approach. We upgrade existing SCF programs with minimal disruption.

It is simple to implement, maximizes supplier participation, expands scope to the enterprise level, automates processes and puts corporate treasury teams in control - achieved without material changes to existing SCF programs.

Upgrading SCF

Take control by upgrading your SCF

The corporate is a global multinational with multiple operating hubs. They have a large SCF program implemented in only one hub.

This existing SCF program is managed by a relationship bank on its in-house SCF platform. There is an active syndication process behind the scenes to distribute participations to relationship banks.

Their existing SCF program is falling short of expectations:

Automate approvals and expand utilisation

The corporate buyer has three main objectives:

Upgrade without material changes

They have given us three important constraints:

PrimaTrade: delivering P&L and utilisation

PrimaTrade's platform can be added to the existing SCF program operated by the bank, delivering the objectives whilst observing the constraints.

PrimaTrade's platform is used to manage the corporate's side of the SCF processes involved.

Upgrading SCF with PrimaTrade

Upgrading SCF with PrimaTrade

PrimaTrade's platform is used to:

How does PrimaTrade do this?

PrimaTrade can achieve these results because our platform is powered by data from suppliers provided at shipment.

What about the existing SCF program?

The existing SCF program is driven by a simple "approved payable" file. This file is produced from its accounting system each time there is a utilisation of the program.

That same approved payable file is created by PrimaTrade instead - so the funder gets exactly the same file but earlier, with P&L wins, with automation and across the whole enterprise.

And adding new funders?

Each new funder will usually have its own way to receive an approved payable file for an SCF program - perhaps onto its own platform or direct to its banking systems.

Adding new funders is straightfoward. PrimaTrade simply outputs an approved payable file to each funder in the format they require. If funders do not have their own SCF platform, they can choose to use PrimaTrade themselves.

And now the corporate is in control.

Corporate treasury decides who should get what on the PrimaTrade platform.

What is the result?

The existing bank platform and SCF program is simply fed from PrimaTrade instead of the buyer's accounting system.

And:

Are we delivering?

Benefits are immediate, realised with minimum IT effort and without needing changes to the existing SCF program.

Ready to make your SCF work smarter?

Contact us today to discover how PrimaTrade can boost your SCF performance—without the hassle

Get in touch with us now to find out more. Click here to send an email or here to book a call.

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