CIMB and AEON BIG Collaborate on Vendor Financing Programme
22 September 2016
Collaboration via CIMB’s commercial payment solution streamlines AEON BIG’s supply chain for increased efficiencies
Kuala Lumpur: CIMB Bank Berhad (“CIMB Bank” or “CIMB”) and AEON BIG (M) Sdn. Bhd. (“AEON BIG”) recently signed an agreement on a Vendor Financing Programme which will enhance the efficiency of AEON BIG’s supply chain management by utilising CIMB’s commercial payments solution as part of CIMB’s Corporate Card Solutions*.
The commercial payments solution in the Vendor Financing Programme will, among others, enable AEON BIG to take advantage of early payment discounts from its suppliers with days payables outstanding (DPO) shortened from 30 days to just 1 day. With the considerably shortened DPO, suppliers will enjoy early collection and improved liquidity, which are crucial factors for a stable supply chain. The solution also addresses supply chain requirements by enabling a more seamless transactional flow between AEON BIG and its suppliers.
Lo Nyen Khing, Group Head, Corporate Banking, CIMB Group said, “CIMB has been at the forefront of cutting edge digital solutions to help corporates achieve greater efficiency and stability in their supply chain management. We understand the importance of a stable supply chain to AEON BIG’s business and this Vendor Financing Programme, which rides on CIMB’s commercial payments solution, reflects our commitment to help corporates significantly improve the stability of their supply chains and maximise cost efficiencies.”
Mitsuru Nakata, Managing Director, AEON BIG (M) Sdn. Bhd. said, “As global and domestic markets grow more dynamic, constant adjustments and tweaks in the way AEON BIG operates are crucial to our business model. As our focus is our customers, our service levels rely on our ability to meet the market demand more efficiently and effectively. With the CIMB commercial payments solution, we will be able to build a stronger working relationship with our suppliers, strengthening our business infrastructure and create a more dynamic system that will benefit our customers in the long run.”
CIMB’s commercial payments solution reduces manual paperwork and streamlines documentation as payments are done electronically. Compared to conventional trade finance products and services which rely on physical documentation, this solution brings considerable operational time- and cost-saving efficiencies to AEON BIG. Furthermore, CIMB’s online real-time data analytics tool gives AEON BIG a better overview of its operational expenditure to facilitate planning and control.
Lo Nyen Khing and Lucas Chew, Head, Cash Management, Transaction Banking, CIMB Group signed on behalf of CIMB Bank while AEON BIG was represented by Mitsuru Nakata and Rashid Adam, Director, AEON BIG (M) Sdn. Bhd.
* CIMB Bank’s Corporate Card Solutions
CIMB Bank Berhad’s Corporate Card Solutions, is a cash management solution to meet businesses’ increasing need for efficiency, transparency and control in their operational expenditure. The Corporate Card and Purchasing Card offer automated processes and real-time reporting to help streamline business-to-business spending, payments and collections. Additionally, a virtual card solution addresses supply chain requirements by enabling a more seamless transactional flow between businesses and their suppliers and customers. Coupled with CIMB’s online real-time data analytics tools, these solutions give organisations a better overview of their operational expenditure to facilitate planning and control. Collectively, these solutions offer unique savings features by optimising cashflows and working capital.
Posing for a photo at the signing of the Vendor Financing Programme agreement were Lo Nyen Khing, Group Head, Corporate Banking, CIMB Group (third from right); Mitsuru Nakata, Managing Director, AEON BIG (M) Sdn. Bhd. (third from left); Lucas Chew, Head, Cash Management, Transaction Banking, CIMB Group (second from right); Rashid Adam, Director, AEON BIG (M) Sdn. Bhd. (second from left); Lee Heng Keng, Head, Corporate Banking, Malaysia, CIMB Group (extreme right) and Chong Han Keong, Accounting General Manager, AEON BIG (M) Sdn. Bhd.
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