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Strengthening the supply chain finance ecosystem for a large manufacturing company

By leveraging Clearfin platform, one of our corporate clients digitised its cash discounting process across all its manufacturing units, ensuring timely payments to suppliers, which resulted in forging stronger ties with them.

Client Overview

The Client is a leader in Polyurethane (PU) Foam manufacturing, with a nationwide presence and an impeccable track record since 1971. No doubt, the company is the largest selling PU Foam manufacturer in
the country.

Key Challenges

The Client has its manufacturing units set up across multiple locations, equipped with an in-house Enterprise Resource Planning (ERP) software and had no set process for early payments to its Suppliers. This led to sporadic requests from Suppliers across the country that had to be managed manually. Due to this, the Supplier participation ratio was low, and the process was time-consuming.

Our Solution

Clearfin enabled the Client to digitise their cash discounting process across all their manufacturing units by integrating it into their in-house ERP system. The Client got a single platform for all early payment requests with various finance options (plugged in with relationship banks and TReDS). Clearfin started with 50 suppliers and demonstrated the benefits of the program to the Company and its Suppliers. This was later implemented for the entire Supplier base.

ERP linked solution allowing decentralised verification of requests with centralised approval system

A total digital solution integrated with the in-house ERP system of the Client

Flexible and customisable approval workflows to engage teams at ten manufacturing units and headquarter

Real-time flexibility to use own funds or external financers

Pilot transactions started in Nov 2018

Scaling up of digital cash discounting platform was achieved in 2019

External financers were added in 2020 to support the Supplier ecosystem during the post-Covid era

Tech Approach

Application Programming Interface (API) based ERP integration on getting a daily feed of accepted invoices from all manufacturing units

Cloud-based web access to all suppliers, updating them on the latest status of their invoices submitted to the buyer

API / Secure File Transfer protocol (SFTP) based integration with the Financer to support integration with their existing Trade Finance portal

Results Achieved

The Client is now able to generate a better return on their liquidity, has strengthened the relationships with its suppliers, and is reaping benefits of the various finance options available to them over a completely integrated Clearfin platform.

Apart from these benefits, Suppliers also now have the advantage of:

Tracking invoices on the Clearfin platform, helping the supplier plan future strategies regarding working capital utilisation

Avoiding the hassle of credit period, as Clearfin provides early payment on invoices uploaded with zero documentation

Clearfin understands supply chain finance nuances. Through our algorithm-based auction and dynamic discounting solutions, we bring efficiencies for the enterprise clients working capital management.
For more information on our solutions
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