Focusing on simplicity is key when setting up an in-house supply chain finance (SCF) programme, said Kenneth Kernen, principal business controller for sourcing at Swedish telecoms firm Telia, speaking at the Working Capital Forum Europe in Amsterdam on 1st December.
Kernen chose to create a SCF system entirely built in-house by using its ERP system and without turning to a fintech or bank to take charge.
“[We needed] a highly automated solution where simplicity is preferred,” he said, speaking at the Working Capital Forum Europe in Amsterdam on 1st December.
While Kernan says he may consider adding other tools to the programme, he sees too much choice as unproductive.
“Adding too many options, nothing gets done. We believe less is more,” he adds.
The programme has all its functionality built into Telia’s existing SAP solution which is fully integrated into Telia’s "normal way of working", explains Kernen.
This contrasts with working with a third-party provider that needs to be integrated and create new ways of working, he adds.
The programme has grown substantially since its launch. In 2015 the SCF share of the company’s total accounts payables stood at 1 percent. By 2021 it reached 63 percent of total accounts payables.
Kernan wrapped up his presentation with advice to companies looking to replicate his achievements, saying you don’t need to look for inspiration from the ‘best’ supply chain finance programmes but “think about the best fit for you”.
© Adaugeo Media Ltd