Enabling Suppliers to do Business the Smart Way Turning the Supply Chain into a Profit Center

Digitization and FinTech may be changed the financial sector dramatically, but many financial leaders are nevertheless focused heavily on working capital management — from the largest companies in the world, to the small and medium-sized businesses, to the mom and pop shops.

When managing working capital, and striving to stay competitive by strengthening cash positions, people often overlook their most critical asset; their supply chain.

Our solution? Turn your supply chain into a profit center.

How? Supplier Financing.

Supplier finance can benefit both sides — the buyer and supplier — by enabling suppliers to get paid faster and allowing buyers to choose to fund the early payment, or extend payment terms, depending on their business model and financial disposition.

The savings potential is compelling, and can literally mean millions added to the bottom. And when a supplier financing program is partnered with an ePayables initiative, efficiencies are increased across the board, making the invoicing and payables process more effective and efficient for all.

Understanding which supplier groups are most likely to accept automatic payment terms, what discount rates buyers need to offer in order to remain competitive, and how to educate suppliers on the benefits of keeping the financing within the supply chain are the most important thing for such a program to be successful.

Some of those key points are also mentioned below:

• Understanding of how to segment suppliers and offer competitive rates
• Ensuring your suppliers know about the benefits of the solution and rely on early payments for their business financing
• Knowing when to use your own cash to pay suppliers early and when to use a third-party

At DRGREP, we are working on cutting-edge technologies, having thought-provoking discussions, and implementing must-needed tools and features to make the supplier-buyer relationship center of working capital management problem. We are expecting to partner with hundreds of innovative financial providers to make this financial journey as much effective as possible. We are just scratching the surface and as we grow we are sure to bring much more to this space.