Current supply chain disruptions and geopolitical challenges are creating significant difficulties for many companies. These uncertainties emphasize the need to optimize financial processes and secure liquidity. The cflox pay solution offers a valuable solution to meet these challenges and strengthen business relationships.

Together with Thomas Farrant and Thorsten Schneider, cflox Managing Director Thomas Krings discusses the solution and its numerous advantages on the fringes of the cflox Business Forum. The focus will be on the Duvenbeck Group, represented by Christian Spieker, who will demonstrate the current challenges and the positive effects of a supply chain finance solution.

Mr. Spieker, the Duvenbeck Group is a logistics company with 41 locations in 11 countries. Your core customers are automotive manufacturers and suppliers. To what extent did you have a need for working capital financing?

Christian Spieker: In the transportation sector, rapid payment is often of great importance for our subcontractors due to the tight price situation. In the assembly sector, however, we often work with suppliers who are specified by our end customers and who rarely accept flexible payment terms. We also continuously monitor key financial figures such as net debt/EBITDA and free cash flow. We manage this with our working capital tools, among other things. We use a variety of instruments - including for our liabilities for some time now.

Duvenbeck has several supply chain finance instruments in use. What was the goal back then? And what goals are you pursuing today?

Christian Spieker: Duvenbeck's original goal was to integrate all suppliers into a supply chain finance program in order to achieve the greatest possible benefit for the Group. To this end, a reverse factoring structure was implemented via a portal solution that allowed suppliers to determine the timing and scope of financing themselves once the onboarding process was complete. The aim was to use this financing to strengthen supplier loyalty to the company.

During the course of the process, however, it turned out that the large suppliers in particular would not participate. In order to still achieve our goals, Duvenbeck opted for a supplementary model that did not require the involvement of suppliers. This gave us a high degree of flexibility and independence in optimizing our working capital and we are the sole "helmsman" of the solution.

Mr. Farrant, you are an expert in working capital management in the supply chain. What challenges do your customers face and how can a solution like cflox pay provide support?

Thomas Farrant: We identify four strategic drivers in our clients' working capital management: First, active working capital management, which involves managing liquidity and payment terms. Secondly, KPI management, which involves monitoring and focusing on specific working capital indicators and compliance with requirements for listed companies. Thirdly, active balance sheet structure management, including the management of covenants. Fourthly, the provision of an efficient CFO management tool. These points enjoy a high level of attention from our customers. And with the Supply Chain Finance program from our cooperation partner cflox, we can offer them an innovative solution. 

One element that should not be forgotten in our discussions with customers is the principle of "keep it simple". Our customers' treasury departments usually don't have time for extensive new projects. cflox pay is therefore ideally suited as the solution can be implemented quickly and provides immediate added value. 

Mr. Spieker, Thomas Farrant just mentioned the implementation of supply chain finance solution cflox pay. How did the onboarding process go at Duvenbeck? 

Christian Spieker: Onboarding with cflox pay was much easier than with other programs. In addition to the contractual aspects, which were regulated exclusively between our company and cflox, only a new payment account had to be set up. Since then, the use of the solution can be controlled independently by using this account. No IT integration is required and neither the purchasing department nor the suppliers need to be involved. We achieved immediate added value after just six weeks of implementation. 

Mr. Schneider, as an auditing company, you have a comprehensive insight into the financial and operational challenges that companies are facing in the current economic landscape. How do you rate the implementation of cflox pay in terms of the financial stability and transparency of companies?

Thorsten Schneider: Given the current economic uncertainties and supply chain disruptions, it is crucial for companies to manage their liquidity efficiently and respond flexibly to changes.

In our role as consultants and auditors, we help companies evaluate and implement SCF solutions and analyze their long-term benefits. For our clients, this means that by using cflox pay, they can improve their financial performance through optimized liquidity management and significantly improve supplier loyalty. In our treasury consulting, we are increasingly noticing that this is becoming a higher priority and that responsibility is being shifted from purchasing and sales to finance. In addition to automation projects and the use of artificial intelligence, working capital is at the top of the list for all clients. 

Mr. Farrant, the current economic development and risk landscape pose many challenges for companies. Do these challenges and objectives reflect the situation of all companies and sectors?

Thomas Farrant: For the majority of companies in every industry, working capital financing is at the top of the priority list. This is mainly due to macroeconomic and political uncertainties as well as supply chain disruptions. We are seeing different strategies to address these challenges. While solutions for the sale of receivables are still very popular, the need for supply chain financing is growing even more strongly.

Our partnership with cflox shows that innovative financing approaches such as cflox pay, combined with a strong banking relationship, are key to succeeding in a volatile economic environment.

About cflox

cflox is an international payment institution that combines payment transactions with working capital and financing to create unique solutions. With a focus on supply chain finance, cflox offers its customers the optimization of payment terms and cash flow without the involvement of suppliers.

For more information visit cfloxpay.com

Press contact

Leonie Bauer

Content & Communications Manager

cflox GmbH

Gaußstraße 190c

22765 Hamburg

l.bauer@cflox.com