Five companies were short-listed out of the global field of entry for the 2017 Supply Chain Finance Awards but it was the submission by Metso Corporation that stood head and shoulders above the rest – earning the company the coveted Gold Award.
In offering suppliers a combination of early payment solutions, Metso was truly demonstrating best practice – “rarely seen” in the market, the judges said. A standard supply chain finance programme alongside a dynamic discounting arrangement enabled Metso to capture the whole of the spend curve, not just part of it.
“The combined solution of dynamic discounting and SCF allows the company to flexibly optimise its working capital or cash investments,” said the judges. “The internal alignment of stakeholders and the rollout strategy of building on and communicating successes is very convincing.”
The fact that suppliers were able to propose the discount rates they were happy to work with provides the best terms for suppliers and is likely to have a very positive impact on the company.
“A world class solution for our suppliers”
The key to Metso’s success, thought Mikko Vainikka, director of treasury market operations, was that the company offered two solutions, enabling the company “to capture the whole spend curve, from the big spend suppliers to the medium and small-sized spend.”
For his team, the Supply Chain Finance Awards win means “great recognition for all the stakeholders who put a huge amount of work into this programme – procurement, our shared services centre, finance and treasury as well.”
Metso’s suppliers should be pleased by the win as well: “I hope they will see that we are able to provide a world class solution for them.”
The other shortlisted entries were Mann & Hummel, Conagra Brands, Nestlé and the Affiliated Hospital of Quindao University.
In winning the Gold Award 2017, Metso Corporation now stands alongside Vodafone, which won the Gold Award in 2016.