Royal Enfield Speeds Up Payments to Suppliers With C2FO’s Help

Find out how C2FO worked with Royal Enfield (RE), the world’s oldest motorcycle brand, to offer its suppliers fair and affordable access to liquidity on demand.

The challenge

Like most of the leading automotive companies, RE deployed multiple financing options through traditional providers but started to see negative feedback and low supplier engagement. Suppliers started to feel the pressure of lack of flexibility, low level of control and too many papers leading to transactional friction. RE began looking for a more reliable and seamless solution.

RE selected C2FO to support it for the following objectives: 

• Create a best-in-class service experience for its suppliers – easy, seamless and digital.
• Provide access to cost-effective and competitive financing options that were both responsive and respectful to unique supplier needs.
• Drive automation and process efficiency thereby reducing the day-to-day transactional friction on both RE and the suppliers’ teams.
• Bring transparency, reliability, flexibility and control in the operational running of the program.

The solution

After a thorough evaluation of multiple financing options covering both traditional and fintech solutions, RE chose to partner with C2FO. RE’s highly proficient team led the deployment of C2FO’s flagship Dynamic Discounting solution – a highly flexible and 100% digital solution to support the evolving needs of its supplier partners.

With a fully automated solution through seamless and secure connectivity with RE’s accounting and business systems, C2FO created a single unified interface for the suppliers to view, act and monitor their cash flows. It allowed RE to customize the program structure to suit its accounts payable (AP) and payment workflows without disrupting any of its existing processes.

C2FO’s intuitive Buyer and Supplier portals (including the mobile app) provided the right digital experience that RE endeavored to bring to both its internal teams and supplier partners. C2FO’s dedicated Account Management and Supplier Relationship team guided the suppliers to smoothly transition from the traditional programs onto C2FO, in line with the ethos of RE.

The results

Supplier Participation — Over 50% year over year growth.

Accounts Payable Accelerated — Cash flow to suppliers grew by 50%.

Supplier Empowerment — Having visibility into their cash flows with an assurance of timely payment reinforced supplier trust in RE’s C2FO program.

Operational Excellence — The transition from a manual to a fully automated process created operational excellence across multiple functions of RE like strategic sourcing, supply chain operations, accounts payable, IT and treasury.

Scale and Impact — Within a few months of launch, the program created a sizable adoption of over 50% (supplier registrations) creating an impactful benefit for both suppliers’ and RE’s business.

Digital Agility — Deployment of the C2FO program brought about digital agility in several areas of RE’s workflows, including the P2P, AP and Payments ecosystem.

Scaling to Eicher Group — Having proven value at RE, the company’s leadership teams decided to scale the C2FO program benefits to their entire group. The RE team quickly replicated the success at their other leading group company, Volvo Eicher Commercial Vehicles Ltd. (VECV), within the first year of the launch.