Category: Manufacturing and industrial
Winner: Siemens – Germany
Summing up: A robust, multi-funder programme that has grown and evolved over the last decade and is now a truly global offering to suppliers large and small.
What the judges said: “A very successful programme with a solid track record and an impressive number of suppliers onboarded. With the size of the company there is a high level of complexity. Transaction value of more than €3.5bn recorded in 2017 and the programme is not dependent on a single bank, even for suppliers with small purchase volumes.”
- First established in 2008, ‘Supply Chain Finance@Siemens’ now has more than 3,000 suppliers with annual spend of €3.5bn
- A multibank facility which proved its robustness during the 2011 euro crisis
- The impact on Siemens now exceeds €38m added to EVA per year
Since it was first set up in 2008, Siemens has grown and developed its supply chain finance programme to the point where it is now truly global, covering more than 3,000 suppliers across more than 20 countries. In the last year, the programme handled transactions worth more than €3.5bn in 13 different currencies.
Moreover, companies with spend volumes as low as €100,000 are served by the programme, which also works with more than 30 different ERP systems, not just SAP.
The programme has had a huge effect on Siemens’ working capital, as the DPO improvement with participating suppliers is greater than 45 days. The impact on EVA is more than €38m a year.
The programme also proved to be very robust when, in the 2011 euro crisis, some banks failed to fund at market rates but were swiftly replaced with unaffected finance partners so that continuous support could be given to suppliers.
Finance and procurement within Siemens work together to reach out to suppliers and provide them with the introductory sessions they need to understand the functionality and benefits of SCF. Enrolment itself is an automated process, paperless in most countries. The programme is managed by corporate treasury under the CFO, but procurement – the supplier-facing side of Siemens – defines the extent and scope of the application of ‘Supply Chain Finance@Siemens’ within individual business units.
For an organisation such as Siemens that undergoes frequent organisational change, the ability of the SCF programme to adapt is another key part of its success.