Managing Working Capital For
A
Pioneer Welding Wires Manufacturer
The story behind the Supplier Financing Transformation of one of India’s foremost Bearing Manufacturers
Background
Our client is a Mumbai, Maharashtra based Complete Friction Solutions provider, with a turnover of approximately ₹1000 Crores, operating eight manufacturing units in India and South East Asia where it produces Needle/Cylindrical/Tapered/ Roller Bearings, Ball Bearings, and Thrust Bearings, among other Anti-Friction Solutions.
The Problems
The Company faced a number of challenges that pushed it to make changes in its Supplier Financing Model. Here they are, as follows:
1
- The first challenge was in the form of extremely low participation from its vendors.
2
- Increasing the organisation’s returns on cash funds, and by extension, improving its EBITDA.
3
- Complete dearth of Financial Flexibility for their Suppliers.
The Solution
The organisation then decided to adopt Xpedize’s Supplier Financing Platform to onboard its suppliers onto a single platform, so as to enable Dynamic Discounting powered Cash Discounting / Invoice Discounting.
What we did
1
- Our dedicated Client Success Management Team ensured that Xpedize onboarded 254 Suppliers.
2
- Which account for more than 71% of the total Vendors, a jump of more than 11 times* the number before.
3
- This led to 14,688 Invoices being Discounted in the past 12 months, translating to an amount of ₹ 150 Crore+ being discounted through Cash Discounting and Financial Institutions.
4
- Towards the end, the company realised its goal of increasing its Returns on Cash Funds by achieving average returns of 12% p.a. on Surplus Funds.
Business Impact
14,688
Invoices Discounted in the past 12 months
254
Suppliers Onboarded, covering
₹ 150 Crore
Amount Transacted through the Platform
71%
Of the total Supplier Base
11.8%
Savings Achieved