Category: Retail and apparel
The judges highly commended the retail sector entry from X5. Its supply chain finance programme has been at the forefront of technical innovation, using a cloud-based EDI (electronic data interchange) platform.
The platform, Factorplat, was designed in collaboration with X5’s treasury team and EDI provider Edisoft. It was initially designed for the retailer’s SME suppliers who typically used traditional factoring programmes which are vulnerable to fraud and have cumbersome legal requirements. Factorplat uses advanced encryption of all e-documents with state-mandated standards and three-party electronic signing.
This elegant solution allows for all parties to access documents safely and securely. It can match documents to check for mistakes, receive information about all the buyer’s payments and perform automatic reconciliation of payments.
The project took 12 months to implement with 1,500 suppliers – about 30% of the total – onboarded. Full coverage is expected by 2017. The success of the project is demonstrated by the fact that risk has been reduced without an increase in operational costs.
Of this project the judges said, “It’s an innovative approach by customising a multi-funder third-party platform to the buyer’s needs, with a focus on risk mitigation (fraud, compliance), with a high number of suppliers connecting within the first year.”