• Coca-Cola Refreshments was looking to grow business without taking on additional risk
• An integrated Financial Supply Chain Management Solution (FSCM) for CocaCola’s ecosystem
• Significant improvement in Coke’s Dales Sales Outstanding (DSO) and competitive working capital funding

Bangkok, May 30th 2019 — United Overseas Bank and Coca-Cola Refreshments Malaysia received the award for Best Financial Supply Chain Management in Malaysia at The Asian Banker–Bankers Choice Awards 2019. The awards ceremony was held in conjunction with the prestigious The Future of Finance Summit 2019, the foremost annual meeting for decision makers in the financial services industry in the Asia Pacific region, held at Shangri-La Hotel, Bangkok, Thailand on May 30th 2019.

Standing from left: David Gyori and Richard Hartung; International Resource Directors and Foo Boon Ping; Managing Editor; The Asian Banker with Mr. Lucas Chew; Head of Transaction Banking; UOB Malaysia

Coca-Cola Refreshments was looking to grow business without taking on additional risk

Malaysian arm of the multinational beverage giant Coca-Cola Refreshments was faced with multiple challenges around providing SME distributors with working capital at competitive rate to eventually grow its sales volume. Coke was additionally looking to improve its Days Sales Outstanding (DSO) to achieve faster receivables collection for optimised cash flow and greater scalability. A credit limit imposed by Coke to its distributors for a given amount of collateral also additionally impacted the distributors overall financial health, should they want to increase their credit limit to purchase more from coke.

UOB Malaysia offered an integrated Financial Supply Chain Management Solution (FSCM) for Coca-Cola’s ecosystem

Given, UOB Malaysia’s understanding of Coke’s distributor requirement needs, it proposed a Distributor Financing Program (DFP) with Coke as anchor and distributors as spokes. UOB Malaysia’s strong scoring system helped determine distributors’ eligibility based on several stringent factors and was able to onboard 13 of 41 recommended distributors. The FSCM solution was additionally bundled with holistic Cash Management (CM) solutions which entailed installation of intelligent commercial cash deposit machines in distributor’s premise and a hassle-free cheque/document pick up service to improve overall efficiency of Coke’s financial ecosystem.

Significant improvement in Coke’s Dales Sales Outstanding (DSO) and competitive working capital funding

Solutions beyond Coke’s financial ecosystem to cover its distributors helped both grow business in tandem. UOB Malaysia’s bespoke FSCM solution increased provision of additional working capital to Coke’s distributor in turn helping Coke garner more sales, market share and revenue. Coke also improved its DSO terms from 45 days to 21 days which enhanced its liquidity, reduced working capital requirement while mitigating risk of non-payment. CM solutions improved productivity, cash flow positions and real-time visibility for distributor accounts. Coke also achieved an established long-term partnership and majorly, stability in business with its distributors.

The Bankers’ Choice Awards 2019, refereed by prominent global bankers, IT consultants and academics, is the most prestigious of its kind in Asia Pacific, which recognise corporations that have strong financials and demonstrate the ability to use the financial supply chain to add value to their partners in the upstream and downstream activities of their businesses. Recipients of these awards are honoured in a gala event that recognises their efforts in bringing superior products and services to their customers. A stringent and comprehensive evaluation process determines the awardees. For specific details relating to description of the awards, evaluation criteria and process, kindly visit http://www.asianbankerawards.com/bankers-choice/index.php.

About The Asian Banker

The Asian Banker Transaction Awards Programme, refereed by prominent global bankers, IT consultants and academics, is the most prestigious of its kind in Asia Pacific. Recipients of these awards are honoured in a gala event that recognises their efforts in bringing superior products and services to their customers. A stringent and comprehensive evaluation process determines the awardees. For specific details relating to description of the awards, evaluation criteria and process, kindly visit http://www.asianbankerawards.com/transactionawards/index.php.

Mr. Alfred Labicassi
The Asian Banker
Email: alabicassi@theasianbanker.com

Categories:

Keywords: