How Telkom unlocked 1.9 Billion Rand by delivering a new Supply Chain Finance program to their suppliers

Telkom Group is a leading ICT service provider in South Africa, operating a diverse portfolio of businesses spanning consumer mobile services, fixed line infrastructure, IT outsourcing, and property management. With an extensive supplier base and ambitious growth plans for its mobile and fixed line networks, Telkom needed a supply chain finance solution that could service all of its suppliers, support multiple funders, and automate payment processes at scale. Ben Fransail, Group Executive for Procurement and Contract Management, explains how the partnership with SAP Taulia delivered exactly that.

Before: Challenges and opportunities

Telkom had an existing supply chain finance program with a different provider and had seen significant early success. However, the program had limitations: one of Telkom’s largest suppliers was unable to trade on the existing solution, and manual reconciliation requirements were adding friction to the process. As Telkom’s ambitions grew, particularly around investing in network expansion, the company needed a fully integrated solution capable of servicing all suppliers, handling multiple currencies and spend segments, and supporting multiple funders at the back end. Telkom went to market through an RFP process to find the right long-term partner.

Why SAP Taulia

SAP Taulia, in partnership with Intellection, was selected through the RFP process as the solution that best met Telkom’s requirements. The implementation began in July 2021 and was completed within approximately four months, covering technical integration and the full migration of all existing suppliers onto the new solution. Telkom took a structured approach to the rollout, segmenting the supplier base by currency and spend volume, developing consistent internal and external communications, training staff, and negotiating updated terms and conditions with suppliers. The Multifunder capability gave Telkom the flexibility it needed to scale the program, and supplier feedback on the ease of use was overwhelmingly positive.

After: Value-driven results

The Supply Chain Finance program unlocked significant working capital for Telkom, enabling the company to invest in the expansion of its mobile and fixed line networks. Suppliers embraced the solution readily, finding it easy to navigate and trade on. The program delivered on its core objectives: freeing up cash flow, simplifying payment processes, and giving suppliers reliable access to early payment. For Telkom, it became one of the most successful treasury initiatives in recent memory, a cross-functional effort involving treasury, procurement, shared services, and IT that demonstrated what strong internal collaboration and the right external partnership can achieve.