Category: FMCG, food and beverage

Winner: SABMiller

Summing up: When it became suddenly necessary to replace its bank-led supply chain finance programme, SABMiller ensured that it chose a partner that could provide a smooth transition for suppliers who had benefited considerably from the previous programme.

What the judges said: “Effective and professional implementation which achieved its aims with strong take-up from suppliers.”

Key facts:

  • SABMiller was forced to switch supply chain finance platforms when its bank provider withdrew from key territories
  • SABMiller chose PrimeRevenue as its global SCF platform in part because of its 50+ finance providers, mitigating funding risks
  • Customer service, project management, risk mitigation and team leadership were critical qualities demonstrated by both companies
  • An excellent onboarding experience for suppliers was another key part of the criteria in selecting a platform

The entry:

SABMiller had previously been operating a supply chain finance programme through a single bank’s proprietary platform. But the brewing giant was forced to switch when the bank decided to withdraw from key territories in central and eastern Europe – a region where SABMiller has the majority of its suppliers.

The company issued an RFP to a number of multi-bank supply chain finance providers. Suppliers had gained significant working capital improvements using the previous platform, so it was important that these companies not be adversely affected by the bank’s decision to withdraw.

In April 2016, SABMiller selected PrimeRevenue to continue with the existing supply chain finance programme and to provide direction into possible new areas of growth. It was important, therefore, that the chosen provider would be able to add additional funding sources as SABMiller move forward with its global supply chain finance programmes.

The drinks company also looked for a platform that could provide an excellent onboarding experience as well as a local-country presence and multi-language capabilities. Future growth opportunities featured highly as SABMiller wanted its SCF platform vendor to be able to extend the geographical reach of the SCF programme as well as having a highly-scalable system to meet possible future needs.

The vendor’s roadmap was a key element in the selection process with SABMiller looking to the platform’s ability to be a leader in areas such as GUIs, languages, SAP Interfacing, supplier log-on and the ability to meet market trends.

It was equally important to ensure that the replacement programme preserved the correct accounting treatment so that payables would not be reclassified as bank debt.

One measure of success is that more than 80% of SABMiller’s suppliers registered within less than 90 days and 72% of suppliers have completed the onboarding process. More than 100 suppliers were onboarded within five weeks. Almost two-thirds of onboarded suppliers are actively trading and more than half are using ‘Auto Advance’ – automatic sale of available receivables.

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