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Supply Chain Finance

Finance for a strong supply chain

Supply Chain Finance @ Siemens has been developed by Siemens Financial Services (SFS) especially for selected Siemens suppliers. Being a multibank solution, Supply Chain Finance @ Siemens is an extremely cost-efficient way for suppliers to convert 100% of the value of their receivables into non-recourse cash at a very attractive discount rate.

Get in contact with our team for further information.
Contact and information

Supply Chain Finance - alternative way of finance

The Supply Chain Finance @ Siemens Program helps to improve the cash flow of selected Siemens suppliers and optimizes their working capital. The cooperation between Siemens and its suppliers will become even more efficient with the utilization of the SCF Program.

 

Siemens Financial Services is responsible for the introduction of the Program and the organization of cooperation between the involved partners.

 

For providing a platform for the management of funding, Siemens has opted for Orbian*, one of the leading companies in the field of supply chain finance solutions. Through its Internet-access for Siemens suppliers the Orbian platform offers a very efficient and user friendly interface.

*ORBIAN Corp is an international company founded by SAP and Citibank which is now held privately with focus on supply chain finance solutions. ORBIAN has been chosen by Siemens for providing the financing platform. A subsidiary of Orbian Corp is acting as the buyer of the receivables. Please find more information at: http://www.orbian.com

 

Summary of supplier benefits

Supply Chain Finance at work

The Supply Chain Finance @ Siemens Program enables selected Siemens suppliers to improve their liquidity through the sale of their Siemens receivables to Orbian at very attractive rates.

Selling options

A supplier can choose from two types of accounts to sell his receivables:

  1. Auto-Discount
    Supplier elects up-front to automatically sell all Siemens approved payments (receivables) to Orbian at the pre-negotiated discount rate.
       
  2. Manual-Discount
    Supplier has the option to select which of the approved payments (receivables) it would like to sell to Orbian at the pre-negotiated discount rate and the timing of such discounts.

Available SCF programs

… for suppliers delivering / invoicing to Siemens in the EU

 

Program Fee

The only cost of the program is the discount charge that a supplier pays on the face value of the receivable to receive early payment.

The current annualized discount rates are based on the supplier’s annual volume with Siemens:

 

> 1m EUR:                            1.00 % p.a.* + EUR-LIBOR**

> 100k EUR, < 1m EUR:      1.20 % p.a.* + EUR-LIBOR**

< 100k EUR:                         2.00 % p.a.* + EUR-LIBOR**

 

* The fixed fee is covering the costs of the program as well as those of the banks providing the fund for the benefit of the suppliers.

** The underlying interest reference rate depends on the currency of the invoice and is fixed in the corresponding contract with ORBIAN, e.g. for EUR invoices the relevant rate is the EUR LIBOR – the negotiated payment term (e.g. 90 days) is relevant for the calculated LIBOR (e.g. 3M LIBOR)

 

Sample calculation:

A supplier delivers products worth EUR 1 million. The payment is due in 90 days (net). When participating in the SCF program, the supplier will receive the payment 80 days earlier.

 

Discount rate:                                1.20 % p.a. + 0 %               (annualized)

Discount charge:                           EUR 2,667                           (1m EUR x 1.20 % x (80 / 360))

Discounted value receivable:      EUR 997,333                      (cash received by supplier)

Cash flow benefit:                         EUR 221,556                      (payment after 10 days instead of 90)

[Discount charge as a percentage of the receivable 0.3 %.]

 

Criteria to join the program:

1/ The supplier needs to be based in one of the following countries !LINKzu PDF!

2/ The minimum yearly PVO of the supplier should not be less than 50k EUR (or equivalent)

3/ The ERP system of the buying Siemens entity needs to be connected to the ORBIAN platform and offer the currency indicated -  please ask your contact at Siemens or the Supply Chain Finance @Siemens advisors

 

How to join the program:

1/ Please enter the country-dependent Enrolment Code on the ORBIAN portal to get to the online setup form

2/ Then follow the steps described on the page – for any questions please get in contact with the ORBIAN support or the Supply Chain Finance @ Siemens advisors

3/ Finally scan and email the requested and signed documents to documentation@orbian.com (sending the original documents by mail isn’t necessary)

 

Contact & Information

Your contact at the Siemens Business is available for further information.

In addition the Supply Chain Finance Team of Siemens Financial Services gives further support and advice:

 

Helpline: +49 89 636 33144

mailto: supply-chain-finance.sfs@siemens.com

 

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… for suppliers d