C2FO and Royal Philips Receive TMI’s Highly Commended Award for Best Sustainable Supply Chain Finance Solution
11 March 2022 |
The C2FO Team
Award Honors C2FO’s Philips Early Payment Programme, Which Offers Suppliers Fair and Affordable Access to Liquidity on Demand
London, England (11 March, 2022) — C2FO, the largest global platform for working capital, today announced that, in partnership with Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, it has received Treasury Management International’s (TMI) Highly Commended Award for Best Sustainable Supply Chain Finance Solution.
The award honours C2FO’s Philips Early Payment Programme, which was implemented in 2018 across 133 countries in multiple currencies. The solution was developed to support Philips suppliers’ cash needs with fair and affordable access to liquidity on demand. Achieving a return on investment within the first 30 days, the programme has improved the financial stability of thousands of Philips suppliers worldwide. In the first 60 days after launch, it also delivered more than €15 million of accelerated payments to suppliers across 60 countries.
Philips was one of the first companies to implement a supply chain finance (SCF) programme in 2009. However, the company was looking for a new solution that optimally engaged suppliers of all sizes. It was through this need that the Early Payment Programme was developed with C2FO, which demonstrates a shared commitment to collaboration, innovation and corporate social responsibility — addressing challenges associated with the long-term sustainability of Philips’ supplier network.
“Given the growth of dynamic discounting and the need to support all our suppliers, we felt we were lagging behind the industry in terms of innovation,” said Alexander Visser, Philips’ head of indirect procurement and spend management. “After an in-depth review of the market, we chose to implement the C2FO platform, which has evolved traditional dynamic discounting to a stronger market-based model. On behalf of Philips and the Spend Management team, I’m grateful and proud to receive recognition from TMI for the work done with our partner C2FO to sustainably support our partners via our supply chain finance solution.”
Furthermore, the flexibility of the programme provided vital support during the pandemic. At its height, Philips created a special rate market for supply chains that supported the global COVID-19 response. In collaboration with C2FO, Philips set up an early payment platform for producers of medical equipment to enable earlier payments at preferential rates to help meet the increase in demand for medical equipment — indicating both the resilience and utility of the C2FO platform.
“I want to take a moment to congratulate Alexander and the entire Philips team for this fantastic recognition — this award highlights a best-in-class treasury programme that genuinely supports sustainability in the supply chain,” said Andrew Burns, C2FO’s senior vice president EMEA. “Philips’ focus on its responsibility towards society aligns fully with C2FO’s commitment to developing solutions that help those who need it to gain greater control over their cash flow — on demand when they need it. The programme we launched in partnership with Philips truly demonstrates our shared ambition of providing the necessary resources to promote the financial health of all suppliers.”
Philips has now made more than €608.7 million in early payments with C2FO, reinforcing and accelerating the firm’s commitment to improving the lives of a million workers in its supply chain by 2025.
C2FO is the world’s largest platform for working capital. We serve over 1 million businesses representing $10.5 trillion in annual sales across more than 160 countries. Our online platform connects more than $110 billion of daily accounts payable and accounts receivable. Whether you need working capital or have excess working capital, Name Your Rate® and the C2FO platform will match your request in seconds. You can accelerate or extend AP or AR on demand, providing you, your customers and your suppliers greater control over cash flow. You can also utilise AR financing and other data-driven funding options.
C2FO is working capital, working for everyone. Our mission is to deliver a future where every company in the world has the capital needed to thrive. To learn more, visit C2FO.com.
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and well-being, and enabling better outcomes across the health continuum — from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2020 sales of €17.3 billion and employs approximately 78,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.
Stephanie Dressler / Daniel Diaz
Dukas Linden Public Relations