How Vodafone is turning its supply chain into an ecosystem of healthy, connected businesses
It is with great pride that we share the news that our long-term customer and partner, Vodafone, took home the top prize last night from the Supply Chain Finance (SCF) Community for its innovative approach to supplier financing using the Taulia platform.
Vodafone’s program shows what can be accomplished when a company embraces supply chain finance technology and strategies. The company is using the Taulia platform — not just to provide its suppliers with einvoicing tools and unprecedented visibility into the status of their payments — but also to offer thousands of its suppliers with access to early payments. The goal is ultimately to offer each of the company’s suppliers access to early payments, making it the largest and most ambitious program of its kind.
“Businesses today can’t operate in isolation,” said Vodafone Assistant Treasurer Jim Tapper. “Rather, we must realize the connected nature of our work. Technology like Taulia allows us to take better care of our suppliers, helping us build stronger, more healthy and ultimately more competitive supply chains. It’s fantastic to be recognized for doing something which makes such clear business sense.”Within nine months of launching the program,
Vodafone has more than 1,400 of its suppliers participating and taking early payments. Suppliers currently taking advantage of early payments have accelerated cash flow by an average of 51 days. This is money they’re able to reinvest in their employees, inventory, technology and communities. It is truly connected business at its finest.
“Vodafone is the embodiment of a successful SCF program using Taulia’s platform,” said Taulia CEO Cedric Bru. “By understanding that their company is only as competitive as its supply chain — and taking steps to protect each business they work with — Vodafone is implementing a strategy that is as ethical as it is competitive. This commitment from a large company like Vodafone is a significant step in protecting suppliers from the market volatility which especially threatens smaller businesses.”
The SCF Community is an independent global community which aims to promote and accelerate the understanding, development and implementation of supply chain finance models. Based out of The Netherlands, the organization is at the forefront of the thought leaders discussing the way SCF can help companies optimize working capital, free up cash flow, and continue to grow in times of uncertain market conditions.
This recognition signifies the growing importance of financial supply chain technology and strategies. A 2015 McKinsey study estimated that supply chain finance is a $1.8 trillion global market creating a potential revenue pool of $20 billion, of which just $2 billion is currently being captured. Buyers like Vodafone are at forefront of this curve by using the SCF technology available to provide supplier financing to more suppliers at cheaper rates.
For more information about the Vodafone journey, see video.