Category: FMCG, food and beverage
Summing up: The partnership between Nestlé and CRX Markets allows the company to work with its relationship banks in a way that lowers the total cost of ownership for suppliers while strengthening Nestlé’s supply chain.
What the judges said: “A success rate of 100% in supplier onboarding is impressive. Numerous suppliers even requested to be onboarded ealier.”
- Changing from a regionally-decentralised to a globally-centralise procurement structure gave Nestlé the opportunity to review its existing SCF arrangements and identify redundancies, inefficiencies and opacities.
- Working with CRX Markets, Nestlé introduced a pure bolt-on arrangement that required no change to existing cash management processes.
- To date, supplier acceptance has been 100% with some suppliers who were not in the first wave asking to be onboarded earlier.
Reshaping its procurement strategy from a regionally-decentralised structure to globally-centralised for its most strategic spend categories enabled Nestlé to rethink its various existing SCF structures. These arrangements were regarded as inefficient, redundant and non-transparent because of the use of multiple single-bank solutions.
Having decided to separate the technical infrastructure from the financing arrangements, Nestlé achieved a flexible, highly-efficient, deeply-integrated and fully-automated SCF solution at a lower total cost of ownership, while securing full flexibility and competitive pricing for the benefit of its global strategic supplier base.
Working with CRX Markets, Nestlé’s SCF programme achieved deep integration into its existing ERP system so as to support all business processes related to SCF but with no manual intervention. This pure bolt-on approach resulted in no change to existing cash management and payments processes, as well as a rapid and standardised global roll-out.
The finance pricing model was transparent and competitive, giving suppliers access to a secure and reliable source of funds while at the same time working with Nestlé’s existing relationship banks. To date, supplier acceptance has been 100% with some suppliers who were not in the first wave asking to be onboarded earlier. The new programme also improved reporting capabilities.