The progression to supply chain event management 1. SCEM Anticipate Analyse Resolve Collaborate 2. Dynamic visibility Real-time information Ability to re-plan 3. Static visibility Where is it? What went wrong?

Financial Institution Supply chain finance Supplier Buyer SCF Platform Financial Institution 1 2 3 6 5 4 Purchase orders Goods/services and invoices Request for discount facility Confirmation/ approval of invoices Invoice payment Discounted finance provided Main principles: The supplier benefits from having access to finance at a preferential interest rate linked to the buyers’ creditworthiness. To make this feasible, the buyers’ rating must be better than the suppliers. The buyer introduces the supplier to the financial institution providing the SCF facility and terms of business are agreed. The buyer approves the suppliers’ invoices an confirms that it will pay the financial institution for these at a fixed future date. The supplier sells (discounts) the invoices to the financial institution at a predetermined discount rate and receives the funds straight away. The buyer pays the financial institution as agreed. In parallel to the SCF facility, the buyer is typically able to negotiate better payment terms and/or prices with the supplier. Source: PWC, Supply Chain Finance, 2014