With a complex supply chain running through 140 petrochemical plants in five continents, the firm’s digitalization will benefit numerous supply chains

On 24 Sep 2024, a global firm dealing in sustainable chemicals announced a move to optimize its working capital under a program to transform its global manufacturing operations, reduce costs, and enhance competitiveness.

Headquartered in Bangkok, Indorama Ventures operates 140 petrochemicals plants across five continents. As part of its corporate transformation programs, a key goal was identified: to free cash flows across the business.

As of August this year, the firm had partnered a firm offering solutions for working capital management to offer “early payments” to its suppliers at preferential rates, aimed at improving supply chain liquidity, optimizing working capital, and supporting business growth through a unified global solution.

Other benefits of partnering a firm for improving management of working capital include:

  • The ability to reduce payment cycle times for suppliers, hence improving the financial health of the Micro, Small and Medium Enterprises (MSME) industry in Asia, where payments are typically made after 60 – 90 days
  • Access to an ecosystem of financial institutions that can provide flexibility and risk mitigation through diverse funding sources
  • Providing suppliers with access to a stable source of liquidity for outstanding invoices
  • Empowerment of Indorama Ventures’ finance and procurement teams to benchmark their working capital against global peers while driving efficiency and automation in their working capital management processes

Said the firm’s Chief Strategy and Transformation Officer, Sanjay Ahuja, streamlining the firm’s financial operations and enhancing IT goals and cash flow management “aims to help strengthen our supplier relationships by ensuring faster payments, which is vital for their growth and stability.”

By accelerating payment cycles and enhancing financial processes, the firm will be able to provide local suppliers with the liquidity, support the Thai economy and build a more robust economic foundation for the future.

According to Rene Ho, Chief Financial Officer, Taulia, the SAP-owned firm offering working-capital management solutions to Indorama Ventures’ enterprise resource planning platform: “We understand the vital role that the supply chain plays in their success… we are committed to helping suppliers of all sizes access the liquidity they need through a carefully designed strategy and framework.”