Haldia Petrochemicals has achieved benchmark-setting vendor coverage and discounting activity, leading to significantly higher financial and operational resilience across their supply chain.
Haldia Petrochemicals wanted to strengthen its supply chain and contribute to the financial resilience of their large base of global vendors through a vendor financing program. The objective was ambitious – achieve program scale across thousands of geographically distributed vendors, and protect valuable strategic relationships that had been built over the course of many years. If this was achieved, this program could help reduce costs in Haldia’s supply chain and also dramatically improve operational efficiency.
The company was ready to explore innovative solutions to achieve scale in vendor financing.
CashFlo set up a comprehensive implementation and program management structure with Haldia Petrochemicals. CashFlo set up and led a cross-functional Project Management Office (PMO) and rapidly executed a pilot program to capture nuances of each supply chain. Innovative outreach methods were used to connect with, provide orientation and training, and finally onboard vendors onto the CashFlo platform.
In the full implementation, a multi-pronged vendor success program was set up. Market visits, in-person onboarding, classroom, and online training programs were introduced to incentivize adoption. CashFlo adopted a dynamic approach where along with vendor onboarding, integration of the platform with Haldia’s systems took place simultaneously.
“We are extremely happy to have partnered with CashFlo for this unique Vendor Financing program. We were able to improve our margins significantly in such a short span of time, while our vendors get access to funding at a rate of their choosing. Their differentiated value proposition and the execution ability has been made the program a success.”
– Head of Treasury
This project set a new standard for rapid parallel execution, and innovative communication mechanisms across the supplier network. As a result, Haldia Petrochemicals achieved ahead-of-expectations vendor coverage and discounting activity, leading to significantly higher financial and operational resilience across their supply chain. Vendors in purchase categories that had never had access to Invoice-based early payments in the past were now actively using the program. Smaller vendors who would not have been reached in the short term by a manual program were onboarded through personal and technological outreach and also became active users of the program.