Tech Data expands C2FO program to Europe after US market success
24 August 2017 |
Tech Data, a global wholesale distributor of technology products and services based in Clearwater, Fla., has relied on C2FO since 2014 to provide their vendors with early access to working capital in the US. The company was highlighted in an article in Supply Chain Brain acknowledged Tech Data for an impressive $26.2 billion in net sales for the fiscal year ended Jan. 1, 2017. The article also highlights the company’s partnership with C2FO.
Over the past three years, Tech Data has had a lot of success using the C2FO program in the US market. Tech Data competes in a fast-paced, low-margin industry. Therefore, “optimizing cash is critical to our success and returns. C2FO gives us a good platform for doing that,” says Scott Walker, Vice President and Treasurer of Tech Data. Prior to partnering with C2FO, Tech Data had been negotiating early-payment terms on an individual basis. “It’s a very time-consuming and inefficient way to do it,” Walker adds.
“It’s been a positive experience and a collaborative relationship. C2FO does a good job of solving a problem without creating new ones. That’s why we renewed for five years.” — Scott Walker
Recently, Tech Data decided to expand their partnership with C2FO to Europe and extend their contract for another five years. Issues such as low interest rates, supplier needs, and shareholder value all served as reasons to utilize the C2FO working capital marketplace in Europe. “We had to find a better way to generate returns for shareholders”, says Walker.
C2FO’s market helps bring Tech Data and their suppliers together to “meet in the middle”, where vendors can accelerate payment of approved invoices “at a rate that works for them”, explains Walker. Suppliers gain access to cash at a discounted rate, allowing them to have more control over cash flow and therefore improve their financial metrics. “In a low-margin business, every basis point counts”, he adds.
A recent acquisition by Tech Data has led to expansion into the Asia-Pacific region, and the company is optimistic about their ability to scale the C2FO program into the region. Tech Data already operates in more than 40 countries globally, “and we see ourselves as continuing to expand,” says Walker.