The Supply Chain Finance (SCF) Awards, which were presented at last Thursday’s SCF Forum at the Beurs van Berlage in Amsterdam, showcase the best examples of supply chain finance from around the world. The awards are organized by the SCF Community and are judged by an independent panel of experts. The win follows the announcement in April 2018 that the CCS had awarded a framework contract to Taulia and Greensill, the world’s leading providers of supplier early payment solutions.
CCS chose to deploy a technology-led approach to SCF, adopting Taulia’s platform together with Greensill’s financing to replace their previous, smaller scale bank solution. Taulia’s platform has enabled CCS to quickly scale early payment capability to public sector bodies throughout the UK, including central government, local authorities and the National Health Service (NHS). Key benefits of the platform include a seamless transition from previous SCF programs, easy supplier onboarding, and the opportunity for all suppliers in the supply chain to benefit from early payment options.
“We are delighted to win this award, which reflects the considerable success of this ground-breaking project delivered by the market-leading provider,” said Matthew Sparkes, Deputy Director at CCS. “The implementation has been very smooth and suppliers have welcomed the streamlined experience.” He noted that strong internal co-ordination between CCS, Department of Health and Social Care and NHS Business Services Authority (NHSBSA) has played a key role in aligning objectives and KPIs for the program and contributing to its successful launch.
The multi-year framework enables public sector organizations to accelerate payments to suppliers via Taulia’s network and offers a range of dynamic discounting and supply chain finance options with the latter provided by Greensill. Contracting authorities can therefore choose the solution that best suits both them and their suppliers. They also have the flexibility of being able to switch between the options as their business objectives evolve. As the Supplier Early Payment Solutions (SEPS) are less than 50 basis points of the advanced payment, CCS has ensured that – by leveraging HMG’s credit rating – payment days are at a maximum of 30. However more often than not, HMG pays within just five days.
Since the announcement, the project has progressed rapidly, with the technical integration completed with the first contracting authority, NHSBSA, in an nine-week period. Meanwhile, the original goal of onboarding 1,500 individual pharmacy contractors has been not just met but exceeded, with further pharmacies continuing to sign up. Suppliers have already accelerated over £170 million via the program in two months, meaning it is the most successful public sector program of its kind.
“I would like to congratulate CCS for this well-deserved win, particularly given the standard of competition at this year’s Supply Chain Awards,” commented Lewis Mitchell, Head of Public Sector Practice at Taulia. “I also commend our team for their tireless work on this project and look forward to its continuing success.”
“Providing companies of all sizes with easy access to finance at the lowest rates is at the core of everything we do at Greensill. We call it the ‘Democratization of Capital’,” said Lex Greensill, founder and CEO of Greensill. “In light of this, it is particularly pleasing to have the pioneering work we do with Taulia and UK Government recognized in such a prestigious forum. Congratulations to CCS and everyone involved in making this program the success it is today.”