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The practical impossibility to perform

supplier onboarding compliant with


stringent KYC regulations prevents banks
from running Supply Chain Finance
programs1
Enrico Camerinelli, Finextra

ONBOARD THE SUPPLY


CHAIN FINANCE PROGRAM

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INTRODUCTION
A particular challenge when deploying
Supply Chain Finance programs has
traditionally been onboarding and ensuring
that opportunities in terms of number of
suppliers in a program are fully realized.
Many do not realize that a successful
Supply Chain Finance program requires
selling the financing solution not only to
the buying organization but also to each
individual supplier.
This whitepaper highlights the key points
about supplier onboarding and the process
involved in implementing and rolling out a
Supply Chain Finance program.

PrimeRevenue Inc. 2013

What is Supply Chain Finance?


Supply Chain Finance is a solution that helps meet corporate objectives including:
working capital, EBITA, reducing supply chain risks. It allows corporates to increase their
payment terms and/or provide the option to their suppliers to get paid early.

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Onboard the Supply Chain Finance Program

SUPPLIER ONBOARDING
INTRODUCTION
Setting up a financing program for your supply
chain is all well and good, but in order to realize
the benefits for you and your trading partners, your
suppliers need to come on board and use it.
Educating the internal buyer teams and
onboarding suppliers may seem like minor points
in a global strategy, but they will make the
difference in achieving a truly successful Supply
Chain Finance program

Supplier segmentation and prioritization are key to


implementing a successful Supply Chain Finance
program. To develop and grow Supply Chain
Finance initiatives requires harnessing relevant
data to manage a targeted approach to onboard
suppliers for which such solution offers the
greatest benefits. The result is suppliers using the
Supply Chain Finance program to receive early
payment.

Many do not realize that a successful Supply


Chain Finance program requires selling the
financing solution not only to the buying
organization but also to each individual supplier.

Customer onboarding lags behind other business


processes in both the quality of customer
experience and costs. If the buyer implements a
poor design and onboarding strategy, the risk is
suppliers abandoning the process and damaging
the relationship between the buyer and suppliers.

The term onboarding is generally used as a way to


describe the process of bringing the suppliers to a
Supply Chain Finance facility. A program is
considered successful when the buyer can
improve its working capital and a majority of
suppliers use Supply Chain Finance to receive
early payment. The ability to bring suppliers to the
table to help all parties understand and appreciate
the benefits to be gained from a program, is key to
the success of a Supply Chain Finance solution.

through dedicated
onboarding solutions as well as
Onboard the Supply Chain Finance
Program
successful proven processes to onboard suppliers

Best practices have addressed these issues

in a Supply Chain Finance program. Applying


these best practices can help buying organization
propel their Supply Chain Finance facility from
average to successful.

If enough time has been spent on the


design of the Supply Chain Finance
solution, all potential problems should
have already been anticipated and
this goes for supplier onboarding as
well.
Peter Stenbring, Ernst & Young2

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