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E-invoicing, SCF & E-procurement

Levi Strauss teams with IFC for supply chain finance

Tuesday 2 December 2014 | 10:02 AM CET

Clothing manufacturer Levi Strauss & Co. and the International Finance Corporation (IFC), a global development institution and a member of the World Bank Group, have partnered to help garment suppliers in emerging countries to roll out a supply chain finance program.

This program, Global Trade Supplier Finance (GTSF) program, provides short-term finance to emerging-market suppliers and small and mid-sized exporters. It operates on an electronic platform called GT Nexus, infrastructure which allows buyers, suppliers, agents, cargo forwarders and other logistics providers to collaborate and manage the flow of goods, funds and trade information. Via this solution, suppliers gain access to financing based on their environmental, health and safety, and labour standards score measured by Levi Strauss & Co.’s Terms of Engagement (TOE), which allows more favourable financing for a better score.

By partnering with the IFC, Levi Strauss & Co. has found a way to incentivize compliance to its Terms of Engagement through the GTSF program.

The GTSF program incentivizes compliance to Levi Strauss & Co. TOE through several features, including: 100% advance rate (minus the discount fee); payment provided within 2 days after the buyer’s acceptance, enabled by GT Nexus; financing rates established by the supplier’s TOE score and the buyer’s credit rating; reduced discount rates with improved sustainability score; no annual facility fee; no minimum use level; no change to existing bank relationships.

Reviewers will rate suppliers’ environmental, health and safety, and labour standards score through annual audits. According to the statement, all other existing operations will remain intact.

More: Link
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