The practical impossibility to perform supplier onboarding compliant with

stringent KYC regulations prevents banks

from running Supply Chain Finance

programs1 Enrico Camerinelli, Finextra

ONBOARD THE SUPPLY

CHAIN FINANCE PROGRAM

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What is Supply Chain Finance?

Supply Chain Finance is a solution that helps meet corporate objectives including:

working capital, EBITA, reducing supply chain risks. It allows corporates to increase their

payment terms and/or provide the option to their suppliers to get paid early.

A particular challenge when deploying

Supply Chain Finance programs has

traditionally been onboarding and ensuring

that opportunities in terms of number of

suppliers in a program are fully realized.

Many do not realize that a successful

Supply Chain Finance program requires

selling the financing solution not only to

the buying organization but also to each

individual supplier.

This whitepaper highlights the key points

about supplier onboarding and the process

involved in implementing and rolling out a

Supply Chain Finance program.

PrimeRevenue Inc. 2013

INTRODUCTION

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Setting up a financing program for your supply

chain is all well and good, but in order to realize

the benefits for you and your trading partners, your

suppliers need to come on board and use it.

Educating the internal buyer teams and

onboarding suppliers may seem like minor points

in a global strategy, but they will make the

difference in achieving a truly successful Supply

Chain Finance program

Many do not realize that a successful Supply

Chain Finance program requires selling the

financing solution not only to the buying

organization but also to each individual supplier.

The term onboarding is generally used as a way to

describe the process of bringing the suppliers to a

Supply Chain Finance facility. A program is

considered successful when the buyer can

improve its working capital and a majority of

suppliers use Supply Chain Finance to receive

early payment. The ability to bring suppliers to the

table to help all parties understand and appreciate

the benefits to be gained from a program, is key to

the success of a Supply Chain Finance solution.

Supplier segmentation and prioritization are key to

implementing a successful Supply Chain Finance

program. To develop and grow Supply Chain

Finance initiatives requires harnessing relevant

data to manage a targeted approach to onboard

suppliers for which such solution offers the

greatest benefits. The result is suppliers using the

Supply Chain Finance program to receive early

payment.

Customer onboarding lags behind other business

processes in both the quality of customer

experience and costs. If the buyer implements a

poor design and onboarding strategy, the risk is

suppliers abandoning the process and damaging

the relationship between the buyer and suppliers.

Best practices have addressed these issues

through dedicated onboarding solutions as well as

successful proven processes to onboard suppliers

in a Supply Chain Finance program. Applying

these best practices can help buying organization

propel their Supply Chain Finance facility from

average to successful.

If enough time has been spent on the design of the Supply Chain Finance

solution, all potential problems should

have already been anticipated and this goes for supplier onboarding as

well. Peter Stenbring, Ernst & Young2

Onboard the Supply Chain Finance Program

SUPPLIER ONBOARDING INTRODUCTION

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Onboard the Supply Chain Finance Program