Duisburg Utility and Transport Company is Honored for Innovative Supplier Financing

March 16, 2017 David Petrikat

 

We are thrilled to announce that Taulia customer The Duisburg Utility and Transport Company was awarded the "Innovation Creates a Lead" prize for its innovative supplier financing at this year's "Day of Public Ordering" by the Federal Ministry of Economics and Energy in Berlin. 

"The {Federal Ministry of Economics and Energy} is awarding the prize in cooperation with the Federal Association of Materials Management, Procurement and Logistics for exemplary innovations of public clients in the procurement sector. The excellent {Duisburg Utility and Transport Company} solution is based on a platform from Taulia, the leading provider of financial supply chain solutions.”

Duisburg Utility and Transport Company, which includes Stadtwerke Duisburg AG and Duisburger Verkehrsgesellschaft AG, among others, has optimized its cooperation with suppliers in such a way that both parties profit equally in a true win-win situation. Early payments from buying organizations through the Taulia platform give suppliers access to liquidity in an unbureaucratic and cost-effective manner. Both parties profit from the technology-based handling payment processes as well as the increased transparency in the field of invoicing and payment transactions.

Duisburg Utility and Transport Company also strengthens its cooperation with its suppliers in the long term and is fulfilling its responsibility as a public contracting entity, in particular to assist the small and medium businesses of this region. In conjunction with supplier self-services, efficiencies are created on both sides and have already led to a measurable decline in questions about the status of invoices and payments.

"Supplier financing by means of dynamic discounting is not a negotiating instrument for procurement, but a real, cost-effective and unbureaucratic financing alternative for our suppliers," says Carsten Saffran, Department Manager for Material Management at Duisburg Utility and Transport Company. Dirk Broska, Commercial Director of Duisburg Utility and Transport Company, also emphasized the savings and process improvements achieved. "In addition to a measurable drop in payment status inquiries from suppliers, we were already able to achieve an additional return on capital of 1.01% through dynamic discounting. Our goal is to expand the program to a total of 60% of our procurement volume."

"Duisburg Utility and Transport Company is a blueprint for successful supplier financing programs in the German market," says Martin Quensel, co-founder and CEO of Taulia Germany. “{Duisburg Utility and Transport Company} understands that companies are only as competitive as their supply chains. As a result, the initiative to provide every supplier with the best possible support in volatile markets and tense liquidity phases is both strategically and ethically important."

The award underscores the importance of technology-driven financial supply chain strategies. A 2015 McKinsey study estimates the potential of supply chain finance at $1.8 billion with a possible volume of $20 billion, of which only $2 billion has been realized so far. Financial supply chain companies such as Taulia, with our agile and innovative approach, are gaining relevant market shares and establishing a new standard for supplier financing as quickly overburdened bank programs are under pressure.

ABOUT DUISBURG UTILITY AND TRANSPORT COMPANY 

With around 4,500 employees, the Duisburg Utility and Transport Company is one of the largest employers in Duisburg. As a local energy service provider, Duisburg Utility and Transport Company contributes decisively to the provision of a high-performance infrastructure in the city with around 490,000 inhabitants. In 2015 the Duisburg Utility and Transport Company Group generated a total turnover of around 1.4 billion euros.

Duisburg Utility and Transport Company is home to more than 30 companies, including Stadtwerke Duisburg AG, Netze Duisburg GmbH, Duisburger Verkehrsgesellschaft AG and octeo Multiservices GmbH.

Further information is available at http://www.dvv.de 

 

 

 
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