CIMB announces vendon financig program with Malaysian FMCG
(20 September 2016 – Malaysia) Malaysian lender, CIMB Bank has announced that it has signed an agreement with FMCG provider Aeon Big on a Vendor Financing Programme which will enhance the latter’s efficiency of supply chain management by utilising the bank’s commercial payments solution as part of CIMB’s Corporate Card Solutions.
In a statement, CIMB Bank said the commercial payments solution in the Vendor Financing Programme will “enable Aeon Big to take advantage of early payment discounts from its suppliers with days payables outstanding (DPO) shortened from 30 days to just 1 day.”
According to the bank, considerably shortened DPO will allow suppliers to enjoy early collection and improved liquidity, crucial factors for a stable supply chain. The solution also addresses supply chain requirements by enabling a more seamless transactional flow between Aeon Big and its suppliers.
Lo Nyen Khing, Group Head, Corporate Banking, CIMB Group said, “We understand the importance of a stable supply chain to AEON BIG’s business and this Vendor Financing Programme, which rides on CIMB’s commercial payments solution, reflects our commitment to help corporates significantly improve the stability of their supply chains and maximise cost efficiencies.”
Mitsuru Nakata, Managing Director, Aeon Big said, “As global and domestic markets grow more dynamic, constant adjustments and tweaks in the way Aeon Big operates are crucial to our business model. As our focus is our customers, our service levels rely on our ability to meet the market demand more efficiently and effectively. With the CIMB commercial payments solution, we will be able to build a stronger working relationship with our suppliers, strengthening our business infrastructure and create a more dynamic system that will benefit our customers in the long run.