Chart Industries was also highly commended under the Best Integrated Working Capital Project category for building an ERP-agnostic supply chain finance (SCF) platform that can integrate new acquisitions quickly and could unlock $30 million of working capital. Judges praised the solution – which has helped Chart preserve supplier relationships while also delivering operational efficiency – for being sophisticated and strategically strong.
Centralise and streamline
Following a string of acquisitions, US-headquartered Chart – a mid-sized maker of engineered equipment for the industrial gas, energy and biomedical sectors – was highly decentralised, with 10 different business units, three ERPs and a fragmented footprint in Europe.
It was keen to centralise and streamline supplier payments across the region while also extending its days payable outstanding (DPO) to mostly 90 days, without disrupting operations. To help support suppliers, it wanted to offer early-payment options in multiple currencies. And it sought to improve operational efficiency and minimise the workload of Accounts Payable.
Scalable and efficient
The solution, delivered in partnership with MUFG, was an SCF programme built on an ERP-agnostic platform. This enables the seamless integration of newly acquired entities, thereby helping the SCF programme scale.
Supplier onboarding has been outsourced to MUFG, helping to accelerate roll-out. Although the programme is still in a relatively early stage, suppliers responsible for half of its targeted supplier spend have already committed to participating, while suppliers associated with another 25% are in discussions with Chart. The company says it has the potential to unlock $30 million of working capital.
The platform has also significantly reduced the burden on Charts’ Accounts Payable and Treasury teams. For example, it uses just one in-house bank account per currency, and auto-debits from a centralised account with MUFG means Chart no longer needs to manipulate due dates.