Helping Procurement Achieve Corporate Objectives While Improving Supplier Relationships

The group tasked with management of the buyer-supplier relationship in the modern corporate organization is known under several names. Sourcing. Procurement. Merchandising. Supply Chain. Whatever the name, the task remains the same - driving the best possible commercial bargain between the Buyer and the Supplier while ensuring that the Buyer's supply chain is financially strong enough to maintain the cashflow and investments required to deliver innovative products and services to meet needs now and in the future.

PrimeRevenue's SCF Platform and services helps the Sourcing/Procurement group within the Buyer organization to achieve significant benefits. These include:

• Facilitating the negotiation of better terms. Depending on current payment practices and processes, SCF can help Buyers offer Suppliers unprecedented cash flow certainty and visibility. This allows Suppliers to greatly reduce the working capital tied up in their accounts receivable process. Making cash flow certainty and visibility available to Suppliers can be used to negotiate better terms such as extension of standard payment terms or lower prices. For investment-grade Buyers, SCF can make available to the Supplier financing that is significantly lower than what the Supplier can achieve on its own. This ability to offer low-cost credit in a credit-constrained world amplifies the benefit of SCF, and helps the Sourcing/Procurement organization better achieve corporate targets around DPO and working capital.
   
• Mandated Procurement Initiatives. Reverse auctions, RFID, Six Sigma and other mandated procurement programs may adversely affect Suppliers. The ultimate goal should be to allow Suppliers to implement these programs without raising costs or creating a network of distressed Suppliers.
   
  With PrimeRevenue, Suppliers can improve their cash positions by discounting approved receivables to cash at anytime during normal invoicing terms. This increased cash liquidity helps ease the financial burden for Suppliers, making the implementation of these programs more successful.  
   
• Advanced Capabilities. Delivered in a Software-as-a-Service model, PrimeRevenue has low implementation requirements; Buyers often look favorably on Suppliers that take advantage of the use of technology to maintain a competitive edge.
   
• Achieve Supplier Diversity Goals. In jursdictions where Supplier Diversity initiatives are identified as an important public policy objective, SCF can help. For example, in the United States, cash flow visibility and acceleration is highly desirable for Minority/Women Business Enterprises (M/WBEs). This need, coupled with Buyer initiatives to increase Days Payable Outstanding (DPOs), may present significant financial challenges to M/WBE Suppliers and can negatively impact the ability to attract and retain them. PrimeRevenue’s Supply Chain Finance solutions provide an invaluable service for addressing these challenges, helping to grow and strengthen the M/WBE Supplier base.