Journey to SCF success

Launching a sophisticated supply chain finance (SCF) program can be a transformative undertaking for companies as well as their suppliers. And for one world-leading transport and logistics company, working with SAP Taulia marked the beginning of a highly successful implementation journey.

Starting the journey

At the beginning of the project, the company was looking to launch a supply chain finance (SCF) program that would strengthen the company’s balance sheet, improve working capital metrics and support the health of its suppliers. A key goal was to deliver value to all shareholders, while providing a smooth onboarding process that could accommodate large numbers of suppliers with minimal friction.

As such, the company was seeking a simple, easy-to-use solution with a modern design. Given the need for simplified KYC/AML processes, as well as multiple funding options, it was clear that a non-bank solution would be best suited to the company’s needs.

Where cost was concerned, the focus was on finding a platform that offered low fees for the company and its suppliers. Crucially, the company was looking for a platform that would not just act as a financing tool, but also help to drive strategic supplier engagement.

Navigating the implementation

After considering the options available, the company opted for SAP Taulia. The implementation was nothing if not ambitious, given that the company had tens of thousands of suppliers in Europe alone. It was critical that the overall process should be as simple as possible, while keeping numerous internal shareholders aligned.

To ensure a smooth implementation, the company focused on one business unit and two pilot countries in the first instance, with SAP Taulia providing project management for the pilot countries.

Key to the implementation’s success was adopting an effective communication strategy to educate suppliers on the program’s benefits. Another important success factor was choosing a solution that was available in all the relevant countries and currencies.

Launching the program…and beyond

By choosing a non-bank solution – and a partner able to optimize the onboarding process – the company was able to bring large numbers of suppliers onto the program quickly and easily. Over 2,000 suppliers were successfully onboarded across 13 countries with different setups, including countries with more challenging regulatory frameworks.

The average acceleration rate was over 80% for onboarded suppliers, illustrating the value of the program to the company’s business-critical vendors. As a result, the firm was able to strengthen supplier relationships and improve the resilience of its supply chain.

Another notable feature of the implementation was the company’s close cooperation with SAP Taulia, which involved co-innovating to introduce platform improvements and new features.

For the company, the project has highlighted two key principles for success. The first is the importance of defining a vision that goes beyond finance. And the second is to view a successful SCF project not as a final destination, but as the foundation for future optimization.