Federico Caniato of Politecnico di Milano and Danny Siemes from PwC explained the latest findings from the annual SCF Barometer, a survey of corporates and their use and views on supply chain finance.
This year’s Barometer revealed that 55% of corporates surveyed are running a supply chain finance programme – and in fact 23% are running more than one programme.
But even for the minority that are not currently offering SCF, 41% of them are considering doing so.
There’s been a significant growth in the number of smaller companies – those with revenue below €250m – offering SCF to their suppliers. Historically it was larger companies – revenues greater than €1bn – that were almost the exclusive offerors of SCF.
But in terms of the suppliers to whom SCF is offered by buying organisations, spend value and strategic relationships are the key drivers in supplier selection.
The landscape is changing in that the industry has been dominated by the major banks. They still dominate but non-traditional suppliers are making their presence felt, with even logistics service providers making notable inroads as SCF providers.
In terms of the benefit, both buyer and supplier are seen as improving their working capital position – but also there is an improvement in the relationship between the two, corporates said.
Just over half (54%) of respondents were satisfied with their SCF programmes with 42% declaring themselves to be ‘neutral’. Just 4% were dissatisfied with their programme. Most are actually looking forward to continuing or expanding their programme, with dynamic discounting the favourite likely avenue for additional future implementation.
Full details will be published shortly.