CIMB, AEON BiG agree vendor financing programme
Malaysia’s second-biggest financial services provider will enable the retailer to take advantage of early payment discounts from suppliers.
Malaysia’s CIMB Bank Berhad and grocery chain AEON BiG have agreed a vendor financing programme (VPM) to enhance the efficiency of the retailer’s supply chain management by utilising CIMB’s commercial payments solution as part of its corporate card solutions. The agreement will enable AEON BiG to take advantage of early payment discounts from suppliers with days payables outstanding (DPO) shortened from 30 days to just one day. With a shortened DPO, suppliers will enjoy early collection and improved liquidity; 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.
“CIMB has been at the forefront of cutting edge digital solutions to help corporates achieve greater efficiency and stability in their supply chain management,” said Lo Nyen Khing, group head, corporate banking, CIMB Group. “We understand the importance of a stable supply chain to AEON BiG’s business and this VPM, 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.”