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BENEFITS  
SOLUTIONS | BENEFITS  
 
 
The value created by reducing financing costs can exceed any cost saving from traditional transportation and warehousing targets.
 
 

Retailers and Buyers

EZD offers retailers/buyers the opportunity to secure their supplier base with a new, risk mitigated, trade-finance methodology. This methodology links the moving and financing of goods and from this linkage produces significant sources of working capital and liquidity for companies who may not efficiently access bank finance for their trade flows.
EZD can remove the Letters of Credit requirement and the associated direct and balance sheet costs while extending payment terms, thereby further reducing the impact on the balance sheet, and satisfy suppliers needs for up front payment. The total cost of financing inventory, which the retailer/buyer is paying for, is not always visible. EZD through is collaborative approach to financing trade can show where costs occur and through risk mitigation how these cost can be apportioned and reduced.

The benefits can be summarised as follows;

  • Increases and diversifies open account credit terms.
  • Lower finance costs to the elimination of Letters of Credit.
  • Buying on extended supply chains is no longer a balance sheet liability that must be funded.
  • Purchasing risk due to non-performance is much reduced or eliminated.
  • Strengthens global supplier partnerships allowing negotiation of better trading terms or improved service levels.
See the Fast-fashion case study from our Case Studies for a broader view of the benefits.


Vendors/Manufacturers

Vendors or manufacturers, particularly in the emerging economies are frequently hindered by the lack of finance available to meet demand. This demand, often from global retailers or buyers, be it for increased supply and or a move away from Letters of Credit to longer open account credit terms can be more than their balance sheets will take. EZD offers vendors/manufacturers the opportunity to secure their supply chain with a new, risk mitigated, trade-finance methodology. This methodology links the moving and financing of goods and from this linkage produces significant sources of working capital and liquidity for companies who may not efficiently access bank finance for their trade flows.
EZD can remove the requirement and the associated direct and balance sheet costs of Letters of Credit, satisfy retailers/buyers with extend payment terms, and produce accelerated cash flows into the front end of the supply chain where it is most needed, thus freeing up the balance sheet to fund core business. The total cost of financing inventory, which should be included in the selling price, is not always visible. EZD through is collaborative approach to financing trade can show where costs occur and how through risk mitigation how these cost can be apportioned and reduced.

The benefits to vendors/manufacturers are;

  • Immediate access to funds on trouble free dispatch of goods.
  • Increased cash capacity allowing growth and expansion.
  • Gives Letter of Credit security with open account flexibility.
  • 100% credit insurance on the buyer.

Logistic Providers

World trade is ever increasing due to the ability of logistic providers to move goods from emerging countries efficiently and to the high service level demands of buyers in mature countries.
In this competitive market value added services are often traded away to nothing and managing sales attrition detracts investment and resource away from maintaining and improving service levels. EZD's trade- finance methodology, which links the moving and financing of goods, offers Logistic Providers a value adding service which can tie customers into longer term contracts and give a competitive advantage when bidding for new business.


The benefits to 3PLs and logistic solution providers are;
  • A competitive advantage.
  • Creates stronger targets within existing markets.
  • Enables better attrition management.
  • Produces long-term supply chain contracts and increased volume.
  • Creates a supply chain finance solution for VMI business.