1. The progression to supply chain event management1.
SCEM
Anticipate
Analyse
Resolve
Collaborate 2.
Dynamic visibility
Real-time information
Ability to re-plan 3.
Static visibility
Where is it?
What went wrong?

2. 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