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.