By leveraging Xpedize platform, one of our corporate clients digitized its cash discounting process across all its manufacturing units, ensuring timely payments to suppliers, which resulted in forging stronger ties with them.
Client Overview
The Client is a leader in Polyurethane (PU) Foam manufacturing, with a nationwide presence and an impeccable track record since 1971. No doubt, the company is the largest selling PU Foam manufacturer in the country.
Key Challenge
The Client has its manufacturing units set up across multiple locations, equipped with an in-house Enterprise Resource Planning (ERP) software and had no set process for early payments to its Suppliers. This led to sporadic requests from Suppliers across the country that had to be managed manually. Due to this, the Supplier participation ratio was low, and the process was time-consuming.
Xpedize Solution
Xpedize enabled the Client to digitize their cash discounting process across all their manufacturing units by integrating it into their in-house ERP system. The Client got a single platform for all early payment requests with various finance options (plugged in with relationship banks and TReDS). Xpedize started with 50 suppliers and demonstrated the benefits of the program to the Company and its Suppliers. This was later implemented for the entire Supplier base.
- ERP linked solution allowing decentralized verification of requests with centralized approval system
- A total digital solution integrated with the in-house ERP system of the Client
- Flexible and customizable approval workflows to engage teams at ten manufacturing units and headquarter
- Real-time flexibility to use own funds or external financers
- Pilot transactions started in Nov 2018
- Scaling up of digital cash discounting platform was achieved in 2019
- External financers were added in 2020 to support the Supplier eco-system during the post-Covid era
Technology Approach
- Application Programming Interface (API) based ERP integration on getting a daily feed of accepted invoices from all manufacturing units
- Cloud-based web access to all suppliers, updating them on the latest status of their invoices submitted to the buyer
- API / Secure File Transfer protocol (SFTP) based integration with the Financer to support integration with their existing Trade Finance portal
Results Achieved
The Client is now able to generate a better return on their liquidity, has strengthened the relationships with its suppliers, and is reaping benefits of the various finance options available to them over a completely integrated Xpedize platform.
Apart from these benefits, Suppliers also now have the advantage of:
- Tracking invoices on the Xpedize platform, helping the supplier plan future strategies regarding working capital utilization
- Avoiding the hassle of credit period, as Xpedize provides early payment on invoices uploaded with zero documentation
Xpedize understands the supply-chain finance nuances, and through our algorithm-based auction and dynamic discounting solutions, we bring efficiencies for the enterprise clients’ working capital management. For more information on our solutions, please visit the solutions page.