A Digital Supplier Portal for Supply Chain Finance in Action

Client’s Supply Chain Snapshot

One of our clients is a top manufacturing and EPC conglomerate, with factories in multiple locations and a large, fragmented supplier base distributed across India.

Problem Statement

The company followed a lengthy and rigid process for supplier payments, illustrated below

• After a Supplier successfully bid for the company’s tender, the Corporate would raise a Purchase Order to the Supplier
  • The Supplier then provides required goods, and issues an ASN upon beginning the process of delivery
  • Company recieves the goods and a Goods Receipt Notice (GRN) is issued to the Supplier, followed by a lengthy Quality Control (QC) period of evaluating the goods
  • Finally, post goods acceptance, the Supplier raises an invoice, against which payment is eventually made by the Corporate
• All processes carried out manually, with little or no digital intervention
• No visibility for the Supplier between GRN and Invoice
• Time spillages and lengthy gaps between each stage of the cycle
• Multiple teams involved; large manpower costs to the Corporate to execute the entire approval process
• Time taken between the GRN issue and Invoice acceptance extended to >50 days
• Lengthy processing time ate up the Supplier’s credit period, preventing it from availing of any financing against these orders

Solution Provided

• CredAble migrated the Corporate client to its digital supplier portal, along with all its suppliers
• Portal customized to the Corporate’s specific needs
• Platform enabled the Corporate to streamline all its processes
• Platform gave 100% visibility to the Supplier at every stage of the invoicing cycle
• Paper trails eliminated by automation of the processes thanks to the digital supplier portal
• CredAble leveraged its relationship with the Corporate to shrink the entire approval process to increase available credit periods for Suppliers on the digital supplier portal
• End-to-end digitization of supply chain operations, right from Purchase Requisition to Payment

Result Witnessed

• Suppliers were able to shrink their invoicing approval turnaround time by 65%
• This in turn improved the relationship between the Corporate and its Suppliers
• Suppliers given access to both pre-invoice and post-invoice funding by integrating with CredAble’s dynamic discounting platform on the digital supplier portal
• With visibility on the automated process, Suppliers were able to receive pre-invoice funding from CredAble basis GRN approval, reducing their cash-to-cash cycle by > 85%
• Monthly fixed costs reduced for Corporate by ~15%, resulting in a direct EBITDA increase

Testimonial

Our decision to work with CredAble was driven by their market-leading, easy-to-use platform and their ability to understand the specific business drivers and nuances of our industry. The key success factors for us were the simplicity and flexibility afforded by the platform. The CredAble team offered expertise around the product which ensured a successful implementation, in a tight timeframe. This has reduced administrative burdens on our side and solidified our reputation as a good paymaster in the industry