Carrefour mandates Deutsche Bank for supply chain finance in Indonesia

News | 30 May 2011
Deal news Carrefour mandates Deutsche Bank for supply chain finance in Indonesia

Carrefour Indonesia has mandated Deutsche Bank to support the launch of the supermarket group’s supply chain finance programme in Indonesia.

Carrefour is the largest retailer in Indonesia, with 81 branches in 27 cities across the country. The initiative will help improve the cash flow of Carrefour’s suppliers by improving their visibility into receivables and providing on-demand access to attractively priced working capital. Carrefour is using its own web-based application, Financial Web Supplier (FWS), which enables suppliers to track invoice payments online and receive payment early.

Carrefour’s suppliers can access the FWS system using the internet, and they can use this to request financing at any time. Carrefour Indonesia is the first within Carrefour’s global network in Asia to implement this programme. Deutsche’s financial supply chain platform connects seamlessly to the FWS platform to deliver both financing and payment services.

Suppliers who have worked with Carrefour for a minimum of two years will be able to enjoy this facility. In the initial phase, Carrefour selected more than 150 suppliers with a purchase volume equivalent to at least $100,000 per month to join the programme.

In recent years, supply chain finance programmes have become popular as an attractive and reliable working capital management tool for both buyers and suppliers. Suppliers can view approved invoices, monitor their cash flow and obtain access to immediate financing of invoices.

Supplier finance programmes are particularly relevant to the retail sector with its short payment terms and high turnover of goods and services. Indonesia, with a population of 240 million people, is currently enjoying a retail boom.

For Carrefour, the system will enable it to build stronger links with key suppliers, said Carrefour Indonesia Finance Director Filipe Da Silva Indonesia. “Our suppliers will be able to accelerate their cash flow by accessing our FWS platform,” he said.

Michael Sugirin, Head of Cash Management and Trade Finance, Deutsche Bank Indonesia, said: “Achieving working capital efficiency has become a key area of focus for corporates, especially in Indonesia where the macro-economic outlook is very positive and consumer sentiment is strong.”

Give Feedback