MIAG MVD presentation 03.05.2012 Mannheim MIAG C.V. Diemen NL
Agenda MIAG s Role in the METRO Group WHY Supply Chain Finance Benefits of Supply Chain Finance Process of MIAG Vendor Discounting (MVD) Partnership Model MEMBER OF METRO GROUP 2
MIAG s Role in the METRO Group 3 Central Payment MIAG Service Contract MSC MIAG MIAG Delcredere Discounting MVD Remttance Advice MSC MIAG Service Contract App. 38B in 2011 Visibility Archive/ Web Site EDI MEMBER OF METRO GROUP 3
MIAG s Role in the METRO Group MIAG s Role: Management of the financial supply chain stream PHYSICAL SUPPLY CHAIN FORECAST-TO-FULLFIL CYCLE FORECAST DEMAND PLAN PRODUCTION PRODUCE RAW MATERIALS PRODUCE GOODS STORE STOCKS SEND GOODS FINANCIAL SUPPLY CHAIN RECEIVE MATERIALS PURCHASE-TO-PAY CYCLE SELECT SUPPLIER NEGOTIATE CREDIT TERMS ORDER MATERIALS RECEIVE INVOICE MAKE PAYMENT RECONCILE PAYMENT SEND GOODS EDI MSS/MVD ORDER-TO-CASH CYCLE PREPARE QUOTE NEGOTIATE CREDIT TERMS RECEIVE PURCHASE ORDER ISSUE INVOICE COLLECT PAYMENT RECONCILE RECEIPT EDI: Electronic Data Interchange MSS: MIAG Settlement System MVD: MIAG Vendor Discounting Other Services MEMBER OF METRO GROUP 4
WHY Supply Chain Finance 5 CASH is more than King Increasing Trade Risk (Bankruptcies, non-deliveries) Access to credits is tight Increasing costs for credits Importance of WC optimisation Importance of managing the Financial Supply Chain Alternative Financing models are required MEMBER OF METRO GROUP 5
WHY Supply Chain Finance Strategy of Supply Chain Finance CFO COO SCF supports SHAPE2012 that is meant to make Metro more customer focused Innovative financial service helps : boost supplier cash flow Reduced liquidity may reduce supplier s ability to supply key products leading Metro unable to secure merchandise optimize supplier mix be customer focused Maintaining NWC is one form of internal financing when credit is tight even for Metro strengthen collaboration with industry partners Diverse & strong supplier base essential to meet customer expectations Give liquidity to your suppliers Understand supply chain risks MVD allows to release capital from supply chain for benefit for all players MEMBER OF METRO GROUP 6
Benefits for Suppliers MIAG Vendor Discounting (MVD) Clients: METRO GROUP suppliers with MSC Visibility Cashflow optimisation Faster invoice resolution Less administrative costs Off-Balance-Sheet financing Non-recourse factoring Better manage existing credit facilities Increase cash & save financing costs Leverage METRO GROUP s Credit Rating and Line MEMBER OF METRO GROUP 7
Benefits for METRO Group MIAG Vendor Discounting (MVD) Centralised pre-financing service Standardised approach Well-proven, effective and user-friendly tool Off-balance due to cooperation with banks Increased reliability of the supply chain Working capital optimisation Payment terms extension Reduction of direct debit Competitive advantage for METRO GROUP MEMBER OF METRO GROUP 8
Supply Chain Finance in EUROPE MVD is available at the moment in: MEMBER OF METRO GROUP 9
Process of MVD MVD - Document flow (the KYC process all in all takes arround 2-3 weeks) Supplier MIAG Bank Supplier has to sign MSC / Addendum After receiving MSC / Addendum, MIAG will inform the Bank-KYC Bank will contact the Supplier and sign the MPA-KYC MSC / Addendum MSC / Addendum sigend KYC Supplier will get the Username/ Password and than can access MVD! MIAG will be informed by the Bank and MIAG will create/ send the Username/ Password to the Supplier KYC Password Pasword KYC Required bank KYC documents MEMBER OF METRO GROUP 10
Partnership Model Suppliers METRO Sales Lines Financial Institutions MEMBER OF METRO GROUP 11
Partnership Model - Market penetration - Common Target - Common Activities (Campaigns) - Resources - Competitiveness (Pricing) - KYC Process - Reliable Partner - Flexibility MIAG MEMBER OF METRO GROUP 12
Thank you for your attention! and your questions MEMBER OF METRO GROUP 13
Contact Markus Trinkler Tel.: +41 41 768 75 83 E-Mail: markus.trinkler@miag.com Internet: www.miag.com MIAG C.V., Diemen NL, Branch Baar Neuhofstrasse 4 CH- 6340 Baar MEMBER OF METRO GROUP 14