CashFlo x Thermax Global: Unlocking Value in Treasury and Procurement For an Engineering Conglomerate

INDUSTRY

Energy

PRODUCTS USED

Dynamic Discounting

KEY SUCCESS METRIC

33% Vendor penetration, up from 5% during hundi program

TURNOVER

~INR 2400 Cr

Objective

Thermax, a leading energy and environment solutions provider in India, faced challenges in optimizing its treasury returns, reducing procurement costs, and automating its complex payment process. Traditional vendor bill discounting programs through banks were cumbersome, involving stringent documentation, fixed interest rates, and limited flexibility. Existing programs, including Hundi programs and bank-based financing, had low adoption rates among vendors, and the company sought a more efficient solution.

Solution Provided

CashFlo revolutionized Thermax's approach to vendor bill discounting with its groundbreaking Dynamic Discounting solution, addressing longstanding challenges in treasury optimization and procurement cost reduction. In response to the limitations of traditional financing programs, CashFlo introduced a tech-based platform offering user-friendly interfaces and unparalleled flexibility. By allowing vendors, particularly smaller corporates in India, to determine their interest rates, CashFlo alleviated the stringent security requirements and fixed interest rates prevalent in the market. The seamless implementation, initiated within five days of MOU signing, and rapid ERP integration within six weeks underscored CashFlo's commitment to providing an efficient and error-free solution. This tech-driven platform not only eased the integration process but also minimized documentation needs, contributing to its popularity among corporates and vendors alike. The positive impact was evident as procurement costs reduced by approximately 1.1%, achieving a 15%+ p.a. APR on discounted invoices without negotiation efforts. Vendor penetration soared by 33%, surpassing the performance of previous programs. The average payment advance time saw a substantial reduction of 27 days, significantly enhancing cash flow predictability for Thermax. The finance leader's testimonial underscored CashFlo's role in not just resolving immediate challenges but also in streamlining payment processes, strengthening supplier relationships, and optimizing cash reserves. CashFlo's tech-based Dynamic Discounting solution emerged as a catalyst in modernizing and streamlining financial processes, providing a win-win scenario for both corporates and vendors in today's dynamic business landscape.

CashFlo's Dynamic Discounting solution has been instrumental in transforming our financial operations. The seamless implementation, completed within six weeks, showcased the team's commitment to making the program work effectively. The professional and dedicated team at CashFlo demonstrated a keen understanding of our needs, ensuring vendors benefited from the platform. Their approach to marketing and user-friendliness has made the tech solution accessible and easy to use. Working with CashFlo has not only optimized our treasury usage and reduced procurement costs but has also strengthened our supplier relationships. It's a straightforward and impactful solution that has indeed paid off for our organization.