How we enabled a leading Indian Diagnostics Brand to increase its Returns on Cash Funds to a staggering 15.6%.
Background
- Our client is by far one of the most well known diagnostic lab chains in the country, offering diagnostic tests and other associated healthcare services across 200+ locations across India, with an employee count of over 3000.
- Over the years, the organisation, on the back of its stellar reputation and reliability, has become one of the biggest brands in pathology, laboratory and diagnostic services in India and beyond.
The Challenge(s)
Over the years, the company faced inefficiencies with its partners in the Supply Chain. Some of these included:
- Prevalence of Traditional Cash Discounting: Only a handful of the company’s vendors ever asked for their bills to be discounted.
- Lack of a common digital platform: Requests were made on Emails and Calls, and coupled with low vendor participation, did not take off as expected.
The Solution
After quickly onboarding the vendors onto our platform, we went on to collaborate with the relevant teams to streamline the organization’s vendors’ financial operations.
The Impact
- Greater participation by the Suppliers
The client was able to onboard as many as 193 Suppliers. Since then, these 193 Suppliers have discounted more than 7634 Invoices on the platform, to the tune of ₹ 107.25 Crores.
- Improved Liquidity for the Suppliers
The Suppliers were able to readily access liquid assets, as per their requirement.
- Increase in EBITDA
The company realized its goal of significantly increasing its Return on Surplus Funds to 15.66% p.a.