INVENTORY PROCUREMENT &
FINANCING SOLUTION
The over-arching objective of this ‘’Nebula Inventory Procurement & Financial solution’’ is the selective take-over of existing component supplier (international and local) agreements. This, to include inventory procurement funding, at preferred payment terms, through local banking institutions and local Nebula Contract Logistics warehousing and value-added-services (VAS).
BENEFITS
Overview of the Benefits and Lever to Drive Value
STRATEGIC
B-BBEE BENEFITS
– Incremental “black local
procurement” spend
– ED and SED spend to offset the cost of setting up the operations
– 51% black-owned with 125% B-BBEE Procurement recognition
OPERATIONS
WAREHOUSING/VAS COST REDUCTION
– Nebula IA and Nebula CL will enable Nebula MS to enhance value to an integrated offering
– VAS & assembling services included as part of the offering
– Best practices applied with
productivity improvement focus
FINANCING
MASSIVE CASH FLOW INCREASE
– Up to 120 days before payment for raw materials freeing up millions
in cash
– All raw materials off the balance sheet
– Head-count reduction:
Section-197 transfers of existing staff to Nebula CL
SUPPLY CHAINS
OPTIMIZATION GAINS & COST REDUCTION
– INCO term, Logistics & Inventory Policy Optimisation
– Packaging and container optimisation & Inbound raw material consolidation at source
– Tracking, enhanced analytics & visibility of raw material inventory across the supply chain.
BENEFITS
The associated benefits for the end-client/s include inter alia:
– Significant Cash Flow improvements – based on negotiated payment terms
– Inventory reduction off-balance-sheet opportunity
– B-BBEE benefit associated with proliferated local Black Supplier procurement spend
– Headcount reductions related to outsourced warehousing & VAS operations
– Minimise local warehousing, handling & VAS costs
– Advanced planning to model INCO terms, supply chain parameters & inventory policies
– Efficiency / optimisation opportunities related to inbound logistics, packaging
improvements & shipment-tracking
THESE ARE THE PRIMARE STEPS TO BE FOLLOWED TO SET-UP SOLUTION
The Process To Freeing Up Cash
Planning
STEP 01
1. Agree on financing with the bank
2. Sign contracts | SLA
3. Plan Implementation
Implementation
STEP 02
1. Implement warehouse/operations
2. Finalise supply chain financial model
3. Negotiate with suppliers
Operations
STEP 03
1. Daily operations to run smoothly
2. Financing to be seamless
3. BI dashboards to display KPI’s & give visibility
Continuous Improvement
STEP 04
1. Supply chain parameters tested & optimized
2. Operations enhanced through best practices
3. Financial model optimized
Case Study
Nebula has a case study to illustrate the financial value and benefits from the Nebula Inventory Procurement & Financing Solution. Should you want more information or would like to review the case study with one of our specialists, please contact us.