In 2008, Electrical Components International (ECI) turned to a customer’s supply chain finance program to accelerate cash flow and access much-needed liquidity. Then CFO Mitch Leonard remarked: “In a time of financial catastrophe for many companies, supply chain finance provided us the cash flow we needed to weather recessionary times.”
The ~$4B private-equity-owned and non-rated company launched its own program last year and now during the 2020 global downturn, ECI and its suppliers have access to the liquidity they need now.
Key takeaways and results include:
- Unlocked $25M in accounts receivable and another $20M in accounts payable
- Improved payment visibility and eliminated discrepancies in invoicing, approvals and payments
- Accelerated cash flow for suppliers resulting in stronger supplier relationships