Automotive producer Volvo has opted to use a supply chain finance (SCF) solution from PrimeRevenue to support its international supplier community.
The SCF product was initially deployed in the second half of 2006, and has now become live and being used by 14 Volvo divisions. Under the new system, Volvo suppliers can take advantage of greater visibility of approved invoices published to the PrimeRevenue SCF Platform, as well as sum-certain, date-certain future cash flows from Volvo.
The PrimeRevenue SCF platform also allows suppliers to selectively sell their Volvo receivables to banking partner Nordea. Suppliers receive their cash in advance of the regular maturity date via this electronic 'on-demand' financing capability. Suppliers can benefit from SCF financing rates based on Volvo's credit rating as well.
Commenting on the adoption of the new SCF system, Olivier Bayzelon, managing director, Volvo supplier financial solutions remarks: "We have selected the PrimeRevenue SCF Platform precisely because it eliminates problems tied to long payment terms traditional in the automotive industry, and strengthens the financial viability of suppliers to obtain Volvo payments at a time they choose, as quickly as a few days after invoice receipt, and for any payments they choose, with a simple click of the mouse”.
Joe Juliano, CEO of PrimeRevenue adds: "We are proud to have worked with Volvo Group buyers and their suppliers to deliver a solution that matches Volvo's requirements and high expectations for a best-in-class supply chain.”