Supply Chain Finance Program for a U.S. Auto Parts Manufacturer
DSO reduced by 22 days; two key buyers extended their relationship on improved terms.
The Challenge
The manufacturer's two largest buyers were requesting extended payment terms of 90 days — up from 45 days — as a condition of renewing supply agreements. Accepting those terms would have created a significant cash flow gap that the manufacturer could not absorb without additional financing.
Our Approach
Sellathon Consulting structured a supply chain finance program that allowed the manufacturer's buyers to pay on extended terms while the manufacturer received early payment from the financing institution. We identified a suitable program provider, managed the onboarding of both buyers, and coordinated the documentation and approval process.
The Result
The program went live within four weeks. The manufacturer's days sales outstanding (DSO) dropped by 22 days, improving cash flow materially. Both buyers renewed their supply agreements, and the manufacturer retained the accounts without sacrificing working capital.