Product
By leveraging the Clear platform, our Buyer client has been able to generate substantially better returns on their liquid funds, while also deeply strengthening their relationships with their supply chain partners.
Our client is a market-leading manufacturer of Polyurethane Foam (PU Foam), with a prominent presence across India. The company has maintained an impeccable reputation since 1970s, and has grown to become the highest-selling manufacturer of polyurethane foam-based products in the country.
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Our client, with multiple manufacturing locations across the country, was running its operations on an in-house ERP (Enterprise Resource Planning) software, but had no provision for providing early payments to its vendors.
This situation would always lead to sporadic, irregular requests from vendors across the country, which required a lot of manual intervention from the client’s end. The inordinate delays, caused by the dependency on manual intervention, also resulted in low participation from the vendors.
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Our cash discounting program was first implemented for 50 suppliers, as part of a pilot program in November 2018.
The success of this pilot discounting program resulted in this facility being extended to the clients' entire supply chain, i.e., their complete supplier base. This happened in Q1 2019, right after the company saw the clear benefits of the pilot exercise – both to themselves and their vendors.
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The Client is now consistently generating a better return on their liquidity, and has been able to strengthen the relationships with their suppliers..
The company is continuing to reap benefits of the various finance options now available to them, via the completely integrated Clear platform.
The company has been able to successfully decentralise the verification of the early payment requests from their vendors with one centralised approval system.
