Launching a Supply Chain Finance (SCF) program is one of the most impactful strategic initiatives a modern CFO can champion. It strengthens your supply chain, optimises working capital, and can even improve profit margins. Yet the path to success can appear complex.
To simplify the journey, we’ve broken the implementation into five clear stages, offering CFOs a practical roadmap from first concept to full-scale, global rollout.
Step 1: Build the Business Case & Secure Stakeholder Buy-In
Before any technology is chosen, a successful SCF program starts with a clear strategy and internal alignment.
Clarity of purpose is the foundation of any successful SCF program. Begin by pinpointing the outcomes you want to achieve. Is the priority to optimise working capital, such as extending Days Payable Outstanding (DPO)? To build a more resilient supply chain by reducing supplier failure risk? Or to enhance margins by unlocking early payment discounts? Setting precise objectives will shape every decision that follows.
An SCF program is never just a finance initiative. It requires organisation-wide alignment. Assemble a core team that brings together finance or treasury leaders to drive financial strategy, procurement to strengthen supplier relationships, IT to manage technical integration, and legal to ensure contractual soundness. This collaboration ensures the program is both financially robust and operationally sustainable.
Step 2: Choose Your Model & Select a Technology Partner
Determine the source of liquidity for early payments. Will you use your own balance sheet (Dynamic Discounting) or a third-party financier like a bank (Supply Chain Finance)? Many enterprises use a hybrid approach.
The Critical Choice: A Bank-Agnostic Platform
For a global enterprise with multiple banking relationships, a bank-agnostic platform is the modern standard. It allows you to manage all your funding partners through a single portal, creating competitive tension that drives down costs. This is far superior to being locked into a single bank’s proprietary system. Read our article to see the clear comparison between Bank-Agnostic vs Single-Bank SCF Platforms.
Step 3: Design the Program & Segment Your Suppliers
Setting Program Rules and Commercial Terms
Collaborate with Treasury and Procurement to establish the program’s commercial framework. Decide how discounts will be structured, set clear payment terms, and align these rules with your organisation’s financial and supplier relationship objectives.
Segment and Prioritise Suppliers
A successful rollout depends on phasing suppliers in strategically. Use data to segment and rank suppliers by:
- Spend Volume: Target suppliers that account for the top 20–30% of spend to maximise initial impact.
- Strategic Importance: Prioritise sole-source suppliers or those operating in higher-risk markets.
- Geography: Group onboarding by country or region to simplify regulatory, tax, and operational considerations.
By applying these criteria, companies typically capture 60–80% of addressable spend in the first wave, creating momentum for broader adoption.
Step 4: Technical Integration & Supplier Onboarding
Integrating with Your ERP System
A key challenge is connecting the SCF platform to your Enterprise Resource Planning (ERP) system for invoice and payment data. Modern platforms like TASConnect use APIs for seamless, light-touch integration, Minimising the burden on your internal IT resources.
The Key to Success: A Seamless Supplier Onboarding Process
Your program is only successful if your suppliers actually join. That’s why their onboarding experience must be seamless, digital, and fast.
A modern platform achieves this with a dedicated self-service portal where suppliers can easily register, track approved invoices, and access early payments. This streamlined process not only encourages adoption but has also been shown to reduce payment errors by up to 66%, creating a win-win for everyone.
Step 5: Launch, Measure, and Scale the Program
Begin with a pilot involving a select group of prioritised suppliers. A controlled launch helps validate processes, capture feedback, and generate early success stories that build momentum for broader adoption.
Measuring Success: Key Performance Indicators (KPIs)
Demonstrating ROI is essential. CFOs should track a set of core performance indicators, including supplier adoption rate, total value of invoices financed, Days Payable Outstanding (DPO) extension, and improvements in the Cash Conversion Cycle (CCC). These metrics provide a clear view of both financial and operational impact.
Scaling for Global Impact
With proof of concept established, leverage your digital platform to expand the program across business units, geographies, and eventually the long tail of smaller suppliers. This phased scaling ensures sustained adoption and maximises overall return on investment.
Implementing an SCF program is a strategic journey. At TASConnect, our experts partner with you at every step to ensure a smooth and successful rollout. Ready to build your roadmap? Contact us for a consultation.
