Sourcing-Force.com: What is causing the emergence of B2B FinTechs

FinTechs

Supply chain financing is traditionally provided by a banking intermediary. It makes it possible to facilitate transactions between Buyers and Suppliers.

The “Financial Technology Companies” are now known under the name of “FinTechs”. They are new intermediaries between a company and its suppliers. The launch of Sourcing Force, in October 2015, allowed companies to facilitate Supplier transactions. Also, the solution makes it possible to optimize the financing of claims.

Source-to-Pay Solution

Thanks to a solution” Source-to-Pay ”, the transaction costs and the working capital of Buyers and Suppliers are improved. When one can extend their payment terms, the other can speed up their payments. Fintechs provide numerous advantages to both buyers and suppliers: more liquidity, fewer late payments, and faster transactions.

Apple, Colgate, P&G, Kellogg's or even Siemens are some of the multinationals that use Fintech to reinvent their supplier collaborations.

Sourcing force

Sourcing Force not only boosts access to suppliers around the world, but also increases available capital for all suppliers.

An eAchat FinTech solution offers suppliers “Low cost” access to financing thanks to the weight of multinationals.

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Sourcing Force streamlines financial transactions and makes supply chain financing more efficient: from the demand for purchase at the payment of suppliers. The solution works in Cloud mode in order to unify Purchasing management process and Accounting. In addition, the disappearance of administrative procurement tasks offers greater sourcing agility for Buyers. Finally, for suppliers, join the platform Sourcing Force It's like downloading an application on your smartphone: child's play!

The advantage for the supplier is that they can get paid whenever they want. This is a significant advantage when other major manufacturers have extended payment terms. In some cases, the supplier receives payment within two days, compared to the 60, 90 or even 120 days often preferred by the client company.

Example:
The supplier offers the client company a discount on the amount of its invoice. It is in line with the lowest cost of capital for the client. For example, if a supplier requests payment within 15 days, of an invoice of €10,000 with a deadline of 90 days, via the Sourcing-Force.com platform. Then a cost of capital of 2% will be offered to him. Using this process, the supplier grants Sourcing-Force.com an interest of €41 and keeps €9,959 out of the initial €10,000.

Generally, companies like Procter & Gamble and Kellogg's have extended their payment term by 120 days using these platforms. The increase in working capital makes it possible to generate finances that will be devoted to new markets.

Evolution of purchases

Traditionally, Purchasing Departments were only linked to sourcing, design and delivery. Today, everything revolves around “funding” and internal productivity. The aim is to optimize the supply chain so that it is no longer a financial burden but a competitive advantage.

Sourcing-Force has the mission to make this objective possible. In addition, it is developing new concepts to facilitate the management of Purchasing and Procurement. To do this, it integrates Purchasing Management modules, eCatalogues or even multi-platform ERP interfaces.

Source: http://www.capsresearch.org/research-activities/#tab-featured-report
https://hbr.org/2016/06/the-rise-of-fintech-in-supply-chains

Olivier Audino, CEO
Graduated from Grenoble School of Management.

Before founding Buy Made Easy, Olivier worked for 7 years in the Purchasing Department of General Electric, United Technologies and the SEB Group.

It is by sharing with operational staff and business leaders in France and Europe that the idea of offering a marketplace that is easy to use and exclusively dedicated to the expectations of professionals was born.