Our client is a Mumbai, Maharashtra based Complete Friction Solutions provider, with a turnover of approximately ₹1000 Crores, operating eight manufacturing units in India and South East Asia where it produces Needle/Cylindrical/Tapered/ Roller Bearings, Ball Bearings, and Thrust Bearings, among other Anti-Friction Solutions.
The Company faced a number of challenges that pushed it to make changes in its Supplier Financing Model. Here they are, as follows:
The first challenge was in the form of extremely low participation from its vendors.
Increasing the organisation’s returns on cash funds, and by extension, improving its EBITDA
Complete dearth of Financial Flexibility for their Suppliers
The organisation then decided to adopt Clearfin's Supplier Financing Platform.
To onboard its supplier onto a single platform so as to enable dynamic discounting powered cash Discounting/Invoice Discounting.
Our dedicated Client Success Management Team ensured that Clearfin onboarded 254 Suppliers
This accounted for more than 71% of the total Vendors, a jump of more than 11 times* the number before.
This led to 14,688 Invoices being Discounted in the past 12 months, translating to over ₹150 Crores being discounted through Cash Discounting and Financial Institutions.
Towards the end, the company realised its goal of increasing its Returns on Cash Funds by achieving average returns of 12% p.a. on Surplus Funds.
14,688 Invoices Discounted in the past 12 months
254 Suppliers Onboarded, covering
₹ 150 Crores transacted through the Platform
71% of the total Supplier Base
11.8% Savings Achieved