Ville Vasunta, Sourcing Manager, Transportation, Posti Oy, explains that Posti’s aim is to build strong cooperation relationships with suppliers. Posti has over 7,000 active suppliers in Finland, the majority of which are small and medium-sized companies. “We want to be known as a good purchaser, customer and partner for suppliers, which will give us access to the best solutions and services. We are also seeking ways of reducing supplier risk and of supporting transport companies in particular as we know times are hard for them.” Posti’s Sourcing unit offered transport companies a supplier package with tire, fuel and insurance policy contracts with benefits based on the purchasing volumes of a large company and also a supply chain finance program launched with OpusCapita. “As a large company we are able to negotiate financing, on average, more easily and more cheaply than small companies. The supply chain finance program allows us to share this benefit with our supply chain and also reduce the pressure on suppliers to raise their prices,” says Vasunta. Suppliers joining the program can quickly receive finance for purchase invoices that have been approved by Posti in only a few days and at a low cost, as the finance is based on Posti’s credit rating. Posti will then provide the financer with payment for the invoice the supplier has traded on the original due date. The solution frees up operating cash flow in the supply chain and in this way improves the operating conditions of both parties. Ville Vasunta explains that supply chain finance helps Posti achieve its strategic target to improve its own working capital. “In terms of sourcing it means the standard ization of our payment practices. There has been a lot of variation in our payment terms. The rapid repatriation of receivables is important for many of our suppliers and the lengthening of payment terms would be problematic for them. Supply chain finance allows us to offer a helping hand to our suppliers.” “The benefit is genuinely mutual,” says Jukka Pöytä laakso, director of one of Posti’s suppliers, Kuljetusliike Pöytälaakso Oy. The haulage company that specializes in contract and food deliveries was one of the first companies to join Posti’s supply chain finance program. Posti’s deliveries make up a considerable share of Kuljetusliike Pöytälaakso’s annual turnover of around EUR 7 million. Pöytälaakso considers supply chain finance to be a cost-efficient alternative to other finance options. Supply chain finance does not tie up collateral or have an effect on the company’s balance sheet, which is a huge benefit. “The chance to finance sales invoices strengthens and balances our liquidity at a time when payment terms are generally getting longer in the sector. However, we have the freedom to choose, based on the situation, whether to wait until the receivable’s due date or whether to take early payment.” “I consider supply chain finance to be part of our close cooperation, which helps to develop our operations and service to the purchaser and our common customers,” says Pöytälaakso. n
“KEEP THE CASH MOVING.” Read more on supply chain finance at opuscapita.com/supply-chain-finance
3+1 REASONS WHY POSTI GROUP CHOSE OPUSCAPITA’S SUPPLY CHAIN FINANCE SOLUTION
When Posti Group made the decision to launch the supply chain finance program it also looked into the traditional supply chain finance solutions offered by banks. After comparing the options, Posti chose OpusCapita as its partner for many reasons. “Firstly, OpusCapita’s service solution and trading platform is highly automated. This makes it possible to easily include a large number of suppliers in the finance program, and also those SME suppliers that are typically left out of other supply chain finance programs,” says Ville Vasunta, Sourcing Manager, Posti Oy. OpusCapita’s Supply Chain Finance service uses the trading platform of world market leader PrimeRevenue. OpusCapita has developed a digital service model and a digital registry process especially for suppliers which lowers the threshold to participate in the program. “Another considerable benefit is that we are not tied to any banks, which guarantees competitive financing. Our current financer is a European bank and we are currently requesting tenders from Nordic financial institutions.” Thirdly, Ville Vasunta mentions OpusCapita’s service which allows the purchasing organization to launch the financing program in an agile way. “We received a comprehensive analysis of our suppliers and a ready proposal stating who to offer the financing program to in the first stage. OpusCapita’s experts also take care of the system integration, the connections with financial institutions and contacting suppliers and connecting them to the program.” Ville Vasunta and Jukka Pöytälaakso both feel it is important for the service to be easy for suppliers to use. “The browser-based trading platform is incredibly easy to use and required no investment from us. Financing of sales receivables is enabled with just three clicks, and OpusCapita’s expert support services are just a phone call away,” says Pöytälaakso. n
DID YOU MISS OUT on our popular series of webinars on supply chain finance? Don’t worry, the webinars are still available at opuscapita.com/webinars
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