financial supply chain management - transactives 2013/presentations 2013... · financial supply...
TRANSCRIPT
Financial Supply Chain Management
Amstelveen 22nd March 2013
Optimise working capital across the value chain by stepping into your clientsrsquo shoes and leveraging existing knowledge
copy 2013 Deloitte The Netherlands
Session of today
1 Deloitte Vision on Financial Supply Chain Management
Discuss what banks and companies could do to
manage and optimise cash flows and financing across
the value chain and reduce costs (FSCM)
Objective
bull How does FSCM create value
bull Are companies ready and preconditions met
bull Why is FSCM not a big success yet
bull Who will conquer this market and support
companies in creating value
bull What should banks do to create successful
propositions
Questions
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
2 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Financial Supply Chain Management enables consistency and cost-
effectiveness of liquidity across a supply chain
3 Deloitte Vision on Financial Supply Chain Management
Trad workcap
(eg Cash
Pooling)
Supply Chain Fin
Financial Supply Chain Integration
AdvCash Mngt
euro euro euro
Scope FSCM solutions
Money
Products
Money
Products
Money
Products
More
efficient
invoicing
process
Expected
savings
euro5-10bn
in NL alone
Lower
capital costs
from risk
optiimisation
Less
working
capital
Source EBA Dinalog Deloitte analysis
Expected savings
Confidential Beata Wandachowicz-Krason March 22 2013
Go
ve
rna
nce
Te
am
wo
rk
Solutions meeting business requirements of the buyer and supplier
Scalable architecture that can be used by affiliates in the future
A single interface to exchange files regardless the location
Agreement on the payment process reconciliation credit notes netting
Enhancement of Purchase-to-Pay process
How to make Supplier Financing a success S
olu
tions
Selection of business partner bank to collaborate
Positioning of the program within the company (function) and mandate for action
Strategy for Supplier Financing roll-out (threshold supplier commodity angle)
Defining responsibilities between parties and alignment on the approach
Risk management
Cross-functional core project team decisive for data analysis and
on-boarding approach
Consolidated efforts on getting suppliers to sign up the program
Shared overall project execution timeline and expected outcome
Regular communication shared dashboard
Building on each otherrsquos experience
Success factors Choices to make
copy 2013 Deloitte The Netherlands
Companies are on the verge of implementing FSCM solutions
5 Deloitte Vision on Financial Supply Chain Management
Money
Products
Money
Products
Money
Products
Supply chain optimisation
Working capital optimisation
Money
Products
Money
Products
Money
Products
Bank
Financial Supply chain management
Internal process optimisation
FSCM as a next phase in improving RoC
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
6 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Less than 10 of transactions in the NL use solutions that relief working
capital costs of the supplier
7 Deloitte Vision on Financial Supply Chain Management
5
Direct Debit
1 3
Bank guarantee
4
Cash in Advance
2
85
Open Account
Cheque Letter of Credit
Payment channels used of all the purchase invoices
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
More than 75 of purchasers experience increasing pressure on payment
terms due to the current economic conditions
8 Deloitte Vision on Financial Supply Chain Management
25
No
75
Yes
Pressure on payments terms of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Only one fifth of purchasers are familiar with the concept of FSCM
9 Deloitte Vision on Financial Supply Chain Management
81
No
19
Yes
Familiarity with FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Session of today
1 Deloitte Vision on Financial Supply Chain Management
Discuss what banks and companies could do to
manage and optimise cash flows and financing across
the value chain and reduce costs (FSCM)
Objective
bull How does FSCM create value
bull Are companies ready and preconditions met
bull Why is FSCM not a big success yet
bull Who will conquer this market and support
companies in creating value
bull What should banks do to create successful
propositions
Questions
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
2 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Financial Supply Chain Management enables consistency and cost-
effectiveness of liquidity across a supply chain
3 Deloitte Vision on Financial Supply Chain Management
Trad workcap
(eg Cash
Pooling)
Supply Chain Fin
Financial Supply Chain Integration
AdvCash Mngt
euro euro euro
Scope FSCM solutions
Money
Products
Money
Products
Money
Products
More
efficient
invoicing
process
Expected
savings
euro5-10bn
in NL alone
Lower
capital costs
from risk
optiimisation
Less
working
capital
Source EBA Dinalog Deloitte analysis
Expected savings
Confidential Beata Wandachowicz-Krason March 22 2013
Go
ve
rna
nce
Te
am
wo
rk
Solutions meeting business requirements of the buyer and supplier
Scalable architecture that can be used by affiliates in the future
A single interface to exchange files regardless the location
Agreement on the payment process reconciliation credit notes netting
Enhancement of Purchase-to-Pay process
How to make Supplier Financing a success S
olu
tions
Selection of business partner bank to collaborate
Positioning of the program within the company (function) and mandate for action
Strategy for Supplier Financing roll-out (threshold supplier commodity angle)
Defining responsibilities between parties and alignment on the approach
Risk management
Cross-functional core project team decisive for data analysis and
on-boarding approach
Consolidated efforts on getting suppliers to sign up the program
Shared overall project execution timeline and expected outcome
Regular communication shared dashboard
Building on each otherrsquos experience
Success factors Choices to make
copy 2013 Deloitte The Netherlands
Companies are on the verge of implementing FSCM solutions
5 Deloitte Vision on Financial Supply Chain Management
Money
Products
Money
Products
Money
Products
Supply chain optimisation
Working capital optimisation
Money
Products
Money
Products
Money
Products
Bank
Financial Supply chain management
Internal process optimisation
FSCM as a next phase in improving RoC
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
6 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Less than 10 of transactions in the NL use solutions that relief working
capital costs of the supplier
7 Deloitte Vision on Financial Supply Chain Management
5
Direct Debit
1 3
Bank guarantee
4
Cash in Advance
2
85
Open Account
Cheque Letter of Credit
Payment channels used of all the purchase invoices
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
More than 75 of purchasers experience increasing pressure on payment
terms due to the current economic conditions
8 Deloitte Vision on Financial Supply Chain Management
25
No
75
Yes
Pressure on payments terms of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Only one fifth of purchasers are familiar with the concept of FSCM
9 Deloitte Vision on Financial Supply Chain Management
81
No
19
Yes
Familiarity with FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
2 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Financial Supply Chain Management enables consistency and cost-
effectiveness of liquidity across a supply chain
3 Deloitte Vision on Financial Supply Chain Management
Trad workcap
(eg Cash
Pooling)
Supply Chain Fin
Financial Supply Chain Integration
AdvCash Mngt
euro euro euro
Scope FSCM solutions
Money
Products
Money
Products
Money
Products
More
efficient
invoicing
process
Expected
savings
euro5-10bn
in NL alone
Lower
capital costs
from risk
optiimisation
Less
working
capital
Source EBA Dinalog Deloitte analysis
Expected savings
Confidential Beata Wandachowicz-Krason March 22 2013
Go
ve
rna
nce
Te
am
wo
rk
Solutions meeting business requirements of the buyer and supplier
Scalable architecture that can be used by affiliates in the future
A single interface to exchange files regardless the location
Agreement on the payment process reconciliation credit notes netting
Enhancement of Purchase-to-Pay process
How to make Supplier Financing a success S
olu
tions
Selection of business partner bank to collaborate
Positioning of the program within the company (function) and mandate for action
Strategy for Supplier Financing roll-out (threshold supplier commodity angle)
Defining responsibilities between parties and alignment on the approach
Risk management
Cross-functional core project team decisive for data analysis and
on-boarding approach
Consolidated efforts on getting suppliers to sign up the program
Shared overall project execution timeline and expected outcome
Regular communication shared dashboard
Building on each otherrsquos experience
Success factors Choices to make
copy 2013 Deloitte The Netherlands
Companies are on the verge of implementing FSCM solutions
5 Deloitte Vision on Financial Supply Chain Management
Money
Products
Money
Products
Money
Products
Supply chain optimisation
Working capital optimisation
Money
Products
Money
Products
Money
Products
Bank
Financial Supply chain management
Internal process optimisation
FSCM as a next phase in improving RoC
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
6 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Less than 10 of transactions in the NL use solutions that relief working
capital costs of the supplier
7 Deloitte Vision on Financial Supply Chain Management
5
Direct Debit
1 3
Bank guarantee
4
Cash in Advance
2
85
Open Account
Cheque Letter of Credit
Payment channels used of all the purchase invoices
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
More than 75 of purchasers experience increasing pressure on payment
terms due to the current economic conditions
8 Deloitte Vision on Financial Supply Chain Management
25
No
75
Yes
Pressure on payments terms of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Only one fifth of purchasers are familiar with the concept of FSCM
9 Deloitte Vision on Financial Supply Chain Management
81
No
19
Yes
Familiarity with FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Financial Supply Chain Management enables consistency and cost-
effectiveness of liquidity across a supply chain
3 Deloitte Vision on Financial Supply Chain Management
Trad workcap
(eg Cash
Pooling)
Supply Chain Fin
Financial Supply Chain Integration
AdvCash Mngt
euro euro euro
Scope FSCM solutions
Money
Products
Money
Products
Money
Products
More
efficient
invoicing
process
Expected
savings
euro5-10bn
in NL alone
Lower
capital costs
from risk
optiimisation
Less
working
capital
Source EBA Dinalog Deloitte analysis
Expected savings
Confidential Beata Wandachowicz-Krason March 22 2013
Go
ve
rna
nce
Te
am
wo
rk
Solutions meeting business requirements of the buyer and supplier
Scalable architecture that can be used by affiliates in the future
A single interface to exchange files regardless the location
Agreement on the payment process reconciliation credit notes netting
Enhancement of Purchase-to-Pay process
How to make Supplier Financing a success S
olu
tions
Selection of business partner bank to collaborate
Positioning of the program within the company (function) and mandate for action
Strategy for Supplier Financing roll-out (threshold supplier commodity angle)
Defining responsibilities between parties and alignment on the approach
Risk management
Cross-functional core project team decisive for data analysis and
on-boarding approach
Consolidated efforts on getting suppliers to sign up the program
Shared overall project execution timeline and expected outcome
Regular communication shared dashboard
Building on each otherrsquos experience
Success factors Choices to make
copy 2013 Deloitte The Netherlands
Companies are on the verge of implementing FSCM solutions
5 Deloitte Vision on Financial Supply Chain Management
Money
Products
Money
Products
Money
Products
Supply chain optimisation
Working capital optimisation
Money
Products
Money
Products
Money
Products
Bank
Financial Supply chain management
Internal process optimisation
FSCM as a next phase in improving RoC
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
6 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Less than 10 of transactions in the NL use solutions that relief working
capital costs of the supplier
7 Deloitte Vision on Financial Supply Chain Management
5
Direct Debit
1 3
Bank guarantee
4
Cash in Advance
2
85
Open Account
Cheque Letter of Credit
Payment channels used of all the purchase invoices
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
More than 75 of purchasers experience increasing pressure on payment
terms due to the current economic conditions
8 Deloitte Vision on Financial Supply Chain Management
25
No
75
Yes
Pressure on payments terms of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Only one fifth of purchasers are familiar with the concept of FSCM
9 Deloitte Vision on Financial Supply Chain Management
81
No
19
Yes
Familiarity with FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
Confidential Beata Wandachowicz-Krason March 22 2013
Go
ve
rna
nce
Te
am
wo
rk
Solutions meeting business requirements of the buyer and supplier
Scalable architecture that can be used by affiliates in the future
A single interface to exchange files regardless the location
Agreement on the payment process reconciliation credit notes netting
Enhancement of Purchase-to-Pay process
How to make Supplier Financing a success S
olu
tions
Selection of business partner bank to collaborate
Positioning of the program within the company (function) and mandate for action
Strategy for Supplier Financing roll-out (threshold supplier commodity angle)
Defining responsibilities between parties and alignment on the approach
Risk management
Cross-functional core project team decisive for data analysis and
on-boarding approach
Consolidated efforts on getting suppliers to sign up the program
Shared overall project execution timeline and expected outcome
Regular communication shared dashboard
Building on each otherrsquos experience
Success factors Choices to make
copy 2013 Deloitte The Netherlands
Companies are on the verge of implementing FSCM solutions
5 Deloitte Vision on Financial Supply Chain Management
Money
Products
Money
Products
Money
Products
Supply chain optimisation
Working capital optimisation
Money
Products
Money
Products
Money
Products
Bank
Financial Supply chain management
Internal process optimisation
FSCM as a next phase in improving RoC
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
6 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Less than 10 of transactions in the NL use solutions that relief working
capital costs of the supplier
7 Deloitte Vision on Financial Supply Chain Management
5
Direct Debit
1 3
Bank guarantee
4
Cash in Advance
2
85
Open Account
Cheque Letter of Credit
Payment channels used of all the purchase invoices
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
More than 75 of purchasers experience increasing pressure on payment
terms due to the current economic conditions
8 Deloitte Vision on Financial Supply Chain Management
25
No
75
Yes
Pressure on payments terms of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Only one fifth of purchasers are familiar with the concept of FSCM
9 Deloitte Vision on Financial Supply Chain Management
81
No
19
Yes
Familiarity with FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Companies are on the verge of implementing FSCM solutions
5 Deloitte Vision on Financial Supply Chain Management
Money
Products
Money
Products
Money
Products
Supply chain optimisation
Working capital optimisation
Money
Products
Money
Products
Money
Products
Bank
Financial Supply chain management
Internal process optimisation
FSCM as a next phase in improving RoC
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
6 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Less than 10 of transactions in the NL use solutions that relief working
capital costs of the supplier
7 Deloitte Vision on Financial Supply Chain Management
5
Direct Debit
1 3
Bank guarantee
4
Cash in Advance
2
85
Open Account
Cheque Letter of Credit
Payment channels used of all the purchase invoices
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
More than 75 of purchasers experience increasing pressure on payment
terms due to the current economic conditions
8 Deloitte Vision on Financial Supply Chain Management
25
No
75
Yes
Pressure on payments terms of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Only one fifth of purchasers are familiar with the concept of FSCM
9 Deloitte Vision on Financial Supply Chain Management
81
No
19
Yes
Familiarity with FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
6 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Less than 10 of transactions in the NL use solutions that relief working
capital costs of the supplier
7 Deloitte Vision on Financial Supply Chain Management
5
Direct Debit
1 3
Bank guarantee
4
Cash in Advance
2
85
Open Account
Cheque Letter of Credit
Payment channels used of all the purchase invoices
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
More than 75 of purchasers experience increasing pressure on payment
terms due to the current economic conditions
8 Deloitte Vision on Financial Supply Chain Management
25
No
75
Yes
Pressure on payments terms of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Only one fifth of purchasers are familiar with the concept of FSCM
9 Deloitte Vision on Financial Supply Chain Management
81
No
19
Yes
Familiarity with FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Less than 10 of transactions in the NL use solutions that relief working
capital costs of the supplier
7 Deloitte Vision on Financial Supply Chain Management
5
Direct Debit
1 3
Bank guarantee
4
Cash in Advance
2
85
Open Account
Cheque Letter of Credit
Payment channels used of all the purchase invoices
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
More than 75 of purchasers experience increasing pressure on payment
terms due to the current economic conditions
8 Deloitte Vision on Financial Supply Chain Management
25
No
75
Yes
Pressure on payments terms of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Only one fifth of purchasers are familiar with the concept of FSCM
9 Deloitte Vision on Financial Supply Chain Management
81
No
19
Yes
Familiarity with FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
More than 75 of purchasers experience increasing pressure on payment
terms due to the current economic conditions
8 Deloitte Vision on Financial Supply Chain Management
25
No
75
Yes
Pressure on payments terms of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Only one fifth of purchasers are familiar with the concept of FSCM
9 Deloitte Vision on Financial Supply Chain Management
81
No
19
Yes
Familiarity with FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Only one fifth of purchasers are familiar with the concept of FSCM
9 Deloitte Vision on Financial Supply Chain Management
81
No
19
Yes
Familiarity with FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
14 of all purchasers use FSCM ndash this is almost three quarter of the group
that is familiar with the concept
10 Deloitte Vision on Financial Supply Chain Management
86
Non-user
14
User
Use of FSCM of respondents
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
To extend the success of FSCM benefits should be made clear and
solutions simple having the product is not enough
11 Deloitte Vision on Financial Supply Chain Management
0
6
9
9
13
16
19
28
31
31
Too expensive
IT not mature
Procurement not responsible
Too complex
Organisation not mature
No need
Benefits not clear
Our bank does not offer reverse factoring
Other
Not in position
Reasons for not considering reverse factoring
Nyenrode FSCM Survey
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Companies should start off by implementing FSCM solutions for strategic
and bottleneck items
12 Deloitte Vision on Financial Supply Chain Management
Use of FSCM solutions of respondents
Source Deloitte analysis Nyenrode FSCM Survey
Focus on the right products Focus on relations that can be influenced
Financial
impact
Supply risk
Strategic items
bull Few sources
bull Large expenditures
bull Complex specs
Partnering
Leverage items
bull Substitutable
bull High expenditure
bull Many sources
Minimize acquisition
costs
Non-critical items
bull Efficient ordering
Minimize total costs
Bottleneck items
bull Few alternatives
bull Few sources
bull New technology
Secure continuity
High
Low
High Low
42
26
14
11
Position to
reward put
under pressure
Expertise
Relationship
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Potential FSCM
Company perspective
Bank perspective
Contents
13 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Various players are interested in gaining a strategic position
14 Deloitte Vision on Financial Supply Chain Management
Clients
Logistics providers
Banks Platform providers
bull Existing customer
relationships and view on
customer credit position
bull International network of
inter-banking partnerships
bull Credit accessibility which is
highly regulated and
therefore trustworthy
bull Access to logistics and
transportation information
which allows risk
mitigation from lending on
in-transit andor in-country
inventory
bull Flexibility in working on FSCM
programs with a wide range of
bank service providers
bull Broad choice of products amp
services
bull Possibility to compare rates for
similar solutions
FSCM initiatives from various industry players
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Although total bank market will reduce banks need to step in and choose
lsquotheir value chainsrsquo
15 Deloitte Vision on Financial Supply Chain Management
LESS
FINANCING MORE STRATEGIC
PARTNER
OPERATIONAL
ldquoLOCK-INrdquo
EXTEND RELATIONS
IN THE VALUE
CHAIN
INCREASED lsquoGRIPrsquo
ON THE VALUE
CHAIN
Potential benefits
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Banks already provide a number of solutions to support efficient transaction
processes already exist
16 Deloitte Vision on Financial Supply Chain Management
Purchase-to-Pay Order-to-Cash
Procurement Planning
and Budgeting
Selecting and
Contracting
Originating
Requirements and
Ordering
Tracking Receipting
and Evaluating
Invoice Processing
Payment
Discrepancy
Management
Sales and Quote
Management
Credit and Risk
Management
Order Processing
Invoicing
Collections
Management
Cash Application
Dispute
Management
Company transaction process
Source Deloitte analysis
CT
DD
Local schemes (cheques cards etc)
Cash management
Core payments
E-invoicing
Reporting
Reconciliation
Factoring
Extended services
Limited potential for bank support
Procurement budgeting
Supplier selection amp contracting
Services out of scope
Current point solutions
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
However a strong FSCM solution also needs to support clients to manage
supply risks on a more strategic level
17 Deloitte Vision on Financial Supply Chain Management
Source Deloitte analysis
Supply Chain Risk Framework
Macro environment risks
Functional risks
Extended value chain risks
Operational risks (internal process risks)
Supply Demand
Early payments
(Reverse) factoring
LC
Guarantee
LC
Current point solutions
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Winning in tomorrowrsquos business requires banks to focus on creating an
organization that provides full working capital solutions fitted to support
real client needs
18 Deloitte Vision on Financial Supply Chain Management
Bring
expertise
together
Get
executive
buy-in
Create
simple
propositions
Leverage
success
cases
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Act now Donrsquot be by-passed
19 Deloitte Vision on Financial Supply Chain Management
bull It is no hype lsquoFinancial Supply Chain
Managementrsquo is a next step in improving
Return on Capital
bull Banks should step into FSCM to acquire a
strong foothold across value chains
bull Success can be achieved by
o Bringing together different expertise
o Focus on example clients
o Explaining benefits clearly
o Thinks from a client perspective
bull Act now
o Companies do it themselves
o Risk of disintermediation
For a digital version of the underlying article
visit wwwdeloittenlepca
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management
copy 2013 Deloitte The Netherlands
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited a UK private company limited by guarantee and its network of member firms
each of which is a legally separate and independent entity Please see wwwdeloittecomabout for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms
Deloitte provides audit tax consulting and financial advisory services to public and private clients spanning multiple industries With a globally
connected network of member firms in more than 150 countries Deloitte brings world-class capabilities and deep local expertise to help clients
succeed wherever they operate Deloittes approximately 170000 professionals are committed to becoming the standard of excel lence
This publication contains general information only and none of Deloitte Touche Tohmatsu Limited its member firms or their related entities
(collectively the ldquoDeloitte Networkrdquo) is by means of this publication rendering professional advice or services Before making any decision or
taking any action that may affect your finances or your business you should consult a qualified professional adviser No entity in the Deloitte
Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication
20 Deloitte Vision on Financial Supply Chain Management