Taking its supply chain capabilities a step further, IndusInd is also looking at establishing a financing solution for suppliers of select corporates, offering competitively priced pre-shipment loans (upto 90 days) to their suppliers, reimbursed directly by the corporate client to IndusInd. As a result, the need for (and cost of). This solution is aimed at making available, working capital that would otherwise be trapped in conventional sales to cash conversion cycles.
Example - The corporate customer places an order with a qualifying supplier up to 90 days before the anticipated delivery date and the supplier, in turn, orders raw materials.
A pre-shipment loan of up to 70%-80% of the total value of the order (the cost of raw materials only) is made to the selected supplier, who in turn completes the order and submits an invoice for the full value of the goods to IndusInd. IndusInd checks invoices submitted by all suppliers upon completion of orders against the PO’s and either approves payment or advises discrepancy. IndusInd receives full payment from the corporate customer. Funds received from the corporate customer are offset against the loans made to the supplier and excess funds, if any, are then remitted to the supplier. IndusInd monitors the pre-finance and payments flows and provides detailed reports to the corporate customer.
IndusInd is also working with some IT vendors in launching an E-Portal which integrates the entire process flow of a Supply Chain solution, thereby enabling further efficiencies and cost saving through process automation and electronic document management.
IndusInd is also in the process of launching it’s state of the art
‘On-Line portal’ (IOL) with flexible and rapid deployment capability;
Full integration capabilities with customer back-office/ERP systems and
Access to web-based real-time, online information.
IndusInd Bank’s On-Line portal (IOL) is aimed at providing value-added solutions for both buyers and sellers by offering integrated risk mitigation, settlement financing and information solutions that span the product continuum, from traditional documentary credit to open account management solutions.
IOL offers a secure, single-point access to a host of products, solutions and information, including but not limited to:
IBL Registration Number NSE: INE231308847
MCX Stock Exchange Limited: INE261314434 for dealing in currency derivatives segment