£25 billion in liquidity available for UK businesses in 2010 through Supply Chain Finance, claims Atos Origin
Andy Lees, Managing Partner at Atos Consulting, the business consulting arm of Atos Origin, said: “Disregarding supply chain finance is a missed opportunity for UK business”. “The current cost of borrowing is still prohibitively expensive, especially for SMEs. Supply Chain Finance provides competitively priced access to early payment and a potentially significant increase in liquidity for the supplier combined with a purchasing saving for the buyer. It really is a win-win solution, which will help to further boost UK businesses as the economy moves into recovery.”
As the economy improves and organisations prepare to accelerate growth, Atos Origin provides the following advice for reaping the maximum benefit from Supply Chain Finance:
- Set up a Supply Chain Finance team, including the representatives from the CFO and CPO offices, to ensure that the programme delivers value to the entire organisation
- Segment the supplier base (for example by spend, credit rating and importance to the business) to identify where Supply Chain Finance can deliver maximum value to the organisation and suppliers
- Review processes and technology systems to ensure that there is the capability and capacity to run Supply Chain Finance, for example to calculate early payment discount terms automatically on a daily basis
- Retain flexibility over how you manage systems, processes and finance by separating technology and finance providers
- For cash-rich organisations, consider self-funding early payments to suppliers as a way of generating financial returns on short term investments
- Most importantly, retain ownership of your supplier relationships
Atos Origin is in discussions with a number of clients in the public and private sectors to advise on how best to implement a Supply Chain Finance programme. Atos Origin’s technology platform manages all elements of the supply chain finance process and uniquely captures and ring-fences savings at the point of payment ensuring that they hit the bottom line. The solution enables clients to be truly flexible in the management of individual suppliers and invoices.
Definition: Supply Chain Finance is a means for organisations to ease the cost of finance for suppliers through mutually beneficial, flexible and sophisticated early payment agreements in exchange for significant price reductions. Supply Chain Finance goes beyond traditional finance solutions (such as factoring, invoice discounting, loans and overdrafts) to deliver significant procurement savings while safeguarding the supply chain.
About Atos Origin
Atos Origin is a leading international information technology (IT) services company, providing hi-tech transactional services, consulting, systems integration and managed operations to deliver business outcomes globally. The company’s annual revenues are EUR 5.5 billion and it employs 50,000 people. Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and has a client base of international companies across all sectors. Atos Origin is quoted on the Paris Eurolist Market and trades as Atos Origin, Atos Worldline and Atos Consulting.
For more information or to talk to Andy Lees, Supply Chain Finance expert at Atos Consulting, please contact:
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