The goal of the survey was to understand the current position, development, and (perceived) successes of SCF.
According to the study with 62 respondents across Europe from a variety of industries, supply chain finance has already taken hold in the corporate environment.
Most respondents have a finance, procurement or working capital related role. Other roles include CEO, MD, innovations manager. Almost half of respondents currently have a supply chain finance programme in place. For companies with revenue over EUR 1 billion, that figure rises to two-thirds.
Moreover, three-quarters of SCF programmes currently in place have only been launched within the last four years, demonstrating the rapid growth of SCF. Satisfaction levels were high and many corporates had plans to extend their SCF programmes.
The SCF Barometer shows that the top SCF industries are consumer goods, automotive, communication & IT and industrial manufacturing.
Moreover, 89% uses primarily reverse factoring, while 48% operate through a bank platform (in-house developed platforms (21%) and other SCF platform providers (e.g. PrimeRevenue, Taulia) (12%) complete the top three). Other technologies (ERP system, e-invoicing, etc.) are less popular and are mainly used in combination with another SCF platform.
What`s more, strategic relationship and spend amounts are key drivers for supplier selection. As for the supply chain finance implementation, in 32% of the cases, it takes over 6 months.
The key factors are supplier appetite, technology, commercial offerings, and the onboarding process. Other critical success factors include the ability of the SCF partner to provide the SCF program globally, and clear contract terms.
Although 78% considers the program to be a full success, not that many suppliers join the program. In addition, according to the report, SCF is not very common in small and medium enterprises.
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