Proctor and gamble supply chain case study june 20jim point. We will provide branded products and services of superior quality and. Discounts are offered on all invoices approved, opening up the entire procurement spend, based on a sliding scale. Cpg company, announced that it would extend its payment terms to suppliers by 30 days. Value chain analysis of procter and gamble case study. For example, in its annual report for the fiscal year ending on 30 june, p. Procter and gamble supply chain by joseph bowman on prezi. The standard definitions for techniques of supply chain finance set out in this document builds upon several excellent initiatives and documents aiming to develop terminology related to this fastgrowing, highvalue but still fairly nascent form of financing, which applies equally in support of domestic and international supply chains. Supply chain finance krijgt steeds meer aandacht bij bedrijven als een middel om hun supply chain. Procter and gamble supply chain procter and gamble corey champlin, joe bowman, alex clark, jim burgasser purpose statement. As global supply chain management becomes a key concern for treasurers, experts see. Joao galvao, global head of supply chain finance payables, deutsche bank. Proctor and gamble supply chain case study june 20jim. Supply chain finance often referred to as scfsupplier financereverse factoring can be an attractive way for companies to improve their working capital.
Buying organizations can extend their payment terms, and suppliers can get paid earlier. But when their top supply chain executives talk about supply chain management, it can be hard to understand what they are talking about. In the end, the improvements enable a step change in service, cost, capital, and agility. As global supply chain management becomes a key concern for treasurers, experts see strong movement towards supply chain financing solutions that can meet both the divergent and shared needs of buyers and sellers. Proctor and gamble supply chain case study june 20jim free download as powerpoint presentation.
It wanted to improve its working capital by extending its days payable outstanding. Supply chain management model of procter and gamble. Global supply chains and crossborder financing by michael g. This includes not only the different companies taking part in the. As part of the companys sustainability statement, p.
Download as pptx, pdf, txt or read online from scribd. Cooper 2000 issues in supply chain management, industrial marketing. Supply chain finance is a true winwin solution for both. Fibria celulose, a brazilian supplier of kraft pulp, joined the program in 20, but was reevaluating the costs and benefits of participating in the scf program in the summer of 2015.
It wanted to improve its working capital by extending its days payable. N a company in the supply chain with demand for project p e. But when their top supply chain executives talk about supply chain management, it can be hard to understand what they are. Supply chain finance, are taken into account, while making value chain decisions in a financial way. Ing wholesale banking wbs supply chain finance scf team can assist companies in improving the financial. Pdf supply chain finance optimizing financial flows in. We have developed the mckinsey digital supply chain compass see figure on next page to structure the main supply chain 4.
G a company in the supply chain related to p, thus having revenuerelevant information on p e. How it works supply chain finance employs two primary methods. Supply chain finance aiming to improve your supply chain is important to any business. The report will delineate the supply chain management model of procter and gamble in line with the intricate aspects of their information systems, procurement, inventory and distribution issues, along with their solutions respectively. Supplier finance works for companies in a variety of sectors, including automotive, electronics, manufacturing, retail, and many others. Supply chain finance optimizing financial flows in supply chains article pdf available in logistics research 4. That reduces working capital and frees up cash flow. In this paper we discuss what suppliers can do to get insight into the. We will provide branded products and services of superior quality and value that improve the lives of the worlds consumers, now and for generations to. We have developed the mckinsey digital supply chain compass see figure on next page to structure the main supply chain. We hire based on the potential we see in people, so here, youll be trusted to dive right. This paper provides evidence that the formation of global supply chain partnerships predicts significant increases, relative to otherwise similar firms, in crossborder financing. Understanding supply chain finance scf in order to understand how supply chain finance can help both buyers and suppliers, it is important to understand its underlying principles.
It is not a loan supplier finance or reverse factoring is an extension of the buyers accounts payable and is not considered financial debt. Do you have a promising product, technology, business model, method, trademark, package or design that can help improve the lives of the worlds consumers. Company filings, capital iq, market data as of september 6, 2017. Gaining insight into the effects of supply chain finance. However, it knew that longer payment terms could undermine its supply chain stability a risk the company was unwilling to take. The first is the extension of supplier payment terms. Supply chain finance is an uncommitted credit facility typically with near investment grade corporations that rely on approved invoices to fund receivables. The vitality of the topic as a highly integrated process is duly highlighted in the report.
It works for companies on both sides of the supply chain. Scribd is the worlds largest social reading and publishing site. Paradigm shift in viewing supply chain management from forecast driven to actual demand driven. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product. Scfacademy provides universal access to the worlds best education, partnering with top universities and organizations to offer courses online. Apr 09, 2018 supply chain finance enables companies to unlock resources trapped in their supply chains. How supply chain finance is offering companies a new cash. This dramatic slowdown of cash outflow gives the buyer. We hire based on the potential we see in people, so here, youll be trusted to dive right in, take the lead, use your initiative, and build billiondollar brands that help make everyday activities easier and make the. Building on what we have termed as traditional trade finance, there are a number of ways in which banks can help corporate clients trade both domestically and crossborder. Winwin and nowin situations in supply chain finance. Below are some common questions that companies ask about supply chain finance and its benefits.
Trends in supply chain finance small business administration. Global supply chains and crossborder financing by michael. G a company in the supply chain related to p, thus having revenuerelevant information on p. How supply chain finance is offering companies a new cash source.
The standard definitions for techniques of supply chain finance set out in this document builds upon several excellent initiatives and documents aiming to develop terminology. But when their top supply chain executives talk about supply chain management, it can be hard to understand what they. The rise of fintech in supply chains ideas and advice. It can also give their suppliers the ability to more effectively control their finances by getting cash. We set a clear course for developing leaders in every business and region, at every level. Nov 30, 2018 this paper provides evidence that the formation of global supply chain partnerships predicts significant increases, relative to otherwise similar firms, in crossborder financing. In this approach, the buyer extends payment terms with all of its suppliers for example, from 60 to 120 days. Supply chain financing helps all parties meet a shared goal optimizing their working capital and managing risk. It can also give their suppliers the ability to more effectively control their finances by getting.
How companies can apply collaborative finance models in their supply chain to. Primary activities those that are directly concerned with creating and delivering a product e. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or. Supply chain finance enables companies to unlock resources trapped in their supply chains. They believe their supply chain systems are too siloed and they are.
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