Three organizations came together to provide financing for the company’s energy and chemical suppliers Aramco deploying what they said is one of the largest supply chain financing programs in the world.
Aramco, Table AND Saudi Industrial Development Fund (SIDF) announced their signing of agreements to establish a supply chain financing solution on Tuesday (29 October) press release.
“Together with our partners, we are introducing this FinTech solution to our suppliers, offering them access to a unique and competitive financing opportunity.” Ziad T. Al-Murshedchief financial officer and executive vice president of finance at Aramco, said in the release. “This platform also provides an investment opportunity for banks to participate as finance providers, increasing the scale and sustainability of the solution.”
The new solution aims to unlock billions of Saudi riyals in liquidity; provide Aramco’s suppliers with an alternative and competitive source of financing; increase their liquidity and accuracy of money forecast; and strengthen the sustainability of Aramco’s supply chain, according to the announcement.
Cedric BruCEO at Taulia, that is A SAP company and a FinTech provider of working capital management solutions, said in the announcement that the solution will enable thousands of companies to access early payments.
“Our goal is to ensure that money flows quickly and easily to suppliers,” said Bru. “When it’s done at scale, it creates opportunities for growth and investment for these businesses. We are extremely excited and proud to make it a reality for Aramco and its trading partners.”
It was reported in April 2021 that Aramco was exploring a supply chain finance initiative that would fund billions of dollars a month in payments to suppliers. The report said the firm had more than 10,000 suppliers in its home country of Saudi Arabia.
Energy company Eni started a supply chain finance SOFTWARE designed to promote sustainable development in March 2023.
to the company Sustainable Supply Chain Financing Program focuses on the energy supply chain and allows Eni’s suppliers to request payment of invoices in advance if they are committed to sustainable development.
In a previous, separate collaboration, Taulia they joined with Visa in March to enable virtual payment credentials to work natively across SAP business applications.
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