PrimeRevenue and The Co-operative Group announce a new supply chain finance partnership. Barclays Bank PLC, who introduced The Co-op to PrimeRevenue, will be providing funding on the supply chain finance program followed by other financial institutions as the program grows.
Co-op has made the strategic decision to partner with PrimeRevenue for its new supply chain finance offering. Fueled by a highly challenging business climate heightened by the pandemic, the company aims to offer suppliers a simple method of early payment to help with their cash flow without having a detrimental impact to Co-op's own cash position. This is particularly relevant in the current environment where the old adage "cash is king" has never been truer.
As the UK continues to experience economic volatility as a result of the global health crisis, Co-op is committed to supporting and protecting the supply chain. This new partnership will allow Co-op to provide a much wider range of its suppliers an early payment option than previously, many of which are already familiar with PrimeRevenue's supply chain finance platform.
"We've used supply chain finance in the past and were aware of its potential to improve cash flow for both Co-op and our suppliers, but we wanted our suppliers to have a more accessible and seamless experience," said Simon Nuttall, Head of Tax, Treasury & Insurance. "What drew us to PrimeRevenue was the company's demonstrated success in achieving a programme's full potential for both customers and suppliers. A large portion of our Phase 1 targeted suppliers were already utilising the platform through other commercial relationships – and we were confident PrimeRevenue's comprehensive approach would allow us to support an even broader range of our supply base with early payment options."
The food retailer will also work with PrimeRevenue to integrate the platform with Co-op's new SAP system, thereby improving overall efficiency across multiple departmental and business systems.
"During the economic crisis, the food retail industry has had its own unique supply chain challenges," said Matt Ford, VP Global Head of Customer Success, PrimeRevenue. "We are excited to provide Co-op a simple way to manage cash flow and maintain their growth plans despite current economic volatility whilst supporting their commitment to protecting suppliers."
Technical implementation of the supply chain finance programme has been successfully completed and the first wave of suppliers are transitioned to the PrimeRevenue platform. More than 60 suppliers are expected to be onboarded in Phase 1 with significantly more to follow.