Supply Chain Finance

Finance for a strong supply chain. Supply Chain Finance @ Siemens has been developed by Siemens Financial Services (SFS) especially for selected Siemens suppliers. Being a multibank solution, Supply Chain Finance @ Siemens is an extremely cost-efficient way for suppliers to convert 100% of the value of their receivables into non-recourse cash at a very attractive discount rate.
Get in contact with our team for further information.

Contact and information

At a glance

Supply Chain Finance - an alternative form of finance

The Supply Chain Finance @ Siemens Program helps to improve the cash flow of selected Siemens suppliers and optimizes their working capital. The cooperation between Siemens and its suppliers will become even more efficient with the utilization of the SCF Program.

 

Siemens Financial Services is responsible for the introduction of the Program and the organization of cooperation between the involved partners.

 

For providing a platform for the management of funding, Siemens has opted for Orbian*, one of the leading companies in the field of supply chain finance solutions. Through its Internet-access for Siemens suppliers the Orbian platform offers a very efficient and user friendly interface.

*Siemens has chosen Orbian, the leader in the development and management of global, major, successful Supply Chain Finance (SCF) programs, to provide the financing platform and act as the buyer of the receivables. Founded by SAP and Citibank in 1999, Orbian is now held privately and dedicated to SCF. Please find more information at: http://www.orbian.com

Summary of supplier benefits

Supply Chain Finance at work

The Supply Chain Finance @ Siemens Program enables selected Siemens suppliers to improve their liquidity through the sale of their Siemens receivables to Orbian at very attractive rates.

Selling options

A supplier can choose from two types of accounts to sell his receivables:

  1. Auto-Discount
    Supplier elects up-front to automatically sell all Siemens approved payments (receivables) to Orbian at the pre-negotiated discount rate.
  2. Manual-Discount
    Supplier has the option to select which of the approved payments (receivables) it would like to sell to Orbian at the pre-negotiated discount rate and the timing of such discounts.

Available SCF programs

EU

… for suppliers delivering / invoicing to Siemens in the EU

 

Program Fee

The only cost of the program is the discount charge that a supplier pays on the face value of the receivable to receive early payment.

The current annualized discount rates are based on the supplier’s annual volume with Siemens:

 

> 1m EUR: 1.00 % p.a.* + EUR-LIBOR**

> 100k EUR, < 1m EUR: 1.20 % p.a.* + EUR-LIBOR**

< 100k EUR: 2.00 % p.a.* + EUR-LIBOR**

 

* The fixed fee is covering the costs of the program as well as those of the banks providing the fund for the benefit of the suppliers.

** The underlying interest reference rate depends on the currency of the invoice and is fixed in the corresponding contract with ORBIAN, e.g. for EUR invoices the relevant rate is the EUR LIBOR – the negotiated payment term (e.g. 90 days) is relevant for the calculated LIBOR (e.g. 3M LIBOR)

 

Sample calculation:

A supplier delivers products worth EUR 1 million. The payment is due in 90 days (net). When participating in the SCF program, the supplier will receive the payment 80 days earlier.

 

Discount rate: 1.20 % p.a. + 0 % (annualized)

Discount charge: EUR 2,667 (1m EUR x 1.20 % x (80 / 360))

Discounted value receivable: EUR 997,333 (cash received by supplier)

Cash flow benefit: EUR 221,556 (payment after 10 days instead of 90)

[Discount charge as a percentage of the receivable 0.3 %.]

 

Criteria to join the program:

1/ The supplier needs to be based in one of the following countries

2/ The minimum yearly PVO of the supplier should not be less than 50k EUR (or equivalent)

3/ The ERP system of the buying Siemens entity needs to be connected to the ORBIAN platform and offer the currency indicated -  please ask your contact at Siemens or the Supply Chain Finance @Siemens advisors

 

How to join the program:

1/ Please enter the country-dependent Enrolment Code on the ORBIAN portal to get to the online setup form

2/ Then follow the steps described on the page – for any questions please get in contact with the ORBIAN support or the Supply Chain Finance @ Siemens advisors

3/ Finally scan and email the requested and signed documents to documentation@orbian.com (sending the original documents by mail isn’t necessary)

 

Contact & Information

Your contact at the Siemens Business is available for further information.

In addition the Supply Chain Finance Team of Siemens Financial Services gives further support and advice:

 

Helpline: +49 89 636 33144

mailto: supply-chain-finance.sfs@siemens.com

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USA and Mexico

… for suppliers delivering / invoicing to Siemens in the US and/or Mexico

 

Program Fee

The only cost of the program is the discount charge that a supplier pays on the face value of the receivable to receive early payment.

The current annualized discount rates are based on the supplier’s annual volume with Siemens:

 

> 500k USD: 1.50 % p.a.* + USD-LIBOR**

> 300k USD, < 500k USD: 1.75 % p.a.* + USD-LIBOR**

< 300k USD: 2.50 % p.a.* + USD-LIBOR**

 

* The fixed fee is covering the costs of the program as well as those of the banks providing the fund for the benefit of the suppliers.

** The underlying interest reference rate depends on the currency of the invoice and is fixed in the corresponding contract with ORBIAN, e.g. for USD invoices the relevant rate is the USD LIBOR – the negotiated payment term (e.g. 90 days) is relevant for the calculated LIBOR (e.g. 3M LIBOR)

 

Sample calculation:

A supplier delivers products worth 100k USD. The payment is due in 90 days (net). When participating in the SCF program, the supplier will receive the payment 80 days earlier.

 

Discount rate: 1.5% + 1.6% (annualized)

Discount charge: USD 689 (100k USD x 3.1% x (80 / 360))

Discounted value receivable: USD 99,311 (cash received by supplier)

Cash flow benefit: USD 22,069 (payment after 10 instead of 90 days)

[Discount charge as a percentage of the receivable: 0.69%]

 

Criteria to join the program:

1/ The supplier needs to be based in one of the following countries

2/ The minimum yearly PVO of the supplier should not be less than 50k USD (or equivalent)

3/ The ERP system of the buying Siemens entity needs to be connected to the ORBIAN platform and offer the currency indicated -  please ask your contact at Siemens or the Supply Chain Finance @Siemens advisors

 

How to join the program:

1/ Please enter the country-dependent Enrolment Code on the ORBIAN portal to get to the online setup form

2/ Then follow the steps described on the page – for any questions please get in contact with the ORBIAN support or the Supply Chain Finance @ Siemens advisors

3/ Finally scan and email the requested and signed documents to documentation@orbian.com (sending the original documents by mail isn’t necessary)

 

Contact & Information

Your contact at the Siemens Business is available for further information. In addition the Supply Chain Finance Team of Siemens Financial Services in the US gives further support and advice - for more information click here

Canada

for suppliers delivering / invoicing to Siemens in Canada

 

Program Fee

The only cost of the program is the discount charge that a supplier pays on the face value of the receivable to receive early payment.

The current annualized discount rates are based on the supplier’s annual volume with Siemens:

 

> 500k CAD: 1.50 % p.a.* + CDOR**

> 300k CAD, < 500k CAD: 1.75 % p.a.* + CDOR**

< 300k CAD: 2.50 % p.a.* + CDOR** 

 

* The fixed fee is covering the costs of the program as well as those of the banks providing the fund for the benefit of the suppliers.

** The underlying interest reference rate depends on the currency of the invoice and is fixed in the corresponding contract with ORBIAN, e.g. for CAD invoices the relevant rate is the CDOR – the negotiated payment term (e.g. 90 days) is relevant for the calculated CDOR (e.g. 3M CDOR)

 

Sample calculation:

A supplier delivers products worth 500k CAD. The payment is due in 90 days (net). When participating in the SCF program, the supplier will receive the payment 80 days earlier.

 

Discount rate: 1.5% + 1.5% (annualized)

Discount charge: CAD 667 (100k CAD x 3.0% x (80 / 360))

Discounted value receivable: CAD 99,333 (cash received by supplier)

Cash flow benefit: CAD 22,074 (payment after 10 instead of 90 days)

[Discount charge as a percentage of the receivable: 0.67%]

 

Criteria to join the program:

1/ The supplier needs to be based in one of the following countries

2/ The minimum yearly PVO of the supplier should not be less than 100k CAD (or equivalent)

3/ The ERP system of the buying Siemens entity needs to be connected to the ORBIAN platform and offer the currency indicated -  please ask your contact at Siemens or the Supply Chain Finance @Siemens advisors

 

How to join the program:

1/ Please enter the country-dependent Enrolment Code on the ORBIAN portal to get to the online setup form

2/ Then follow the steps described on the page – for any questions please get in contact with the ORBIAN support or the Supply Chain Finance @ Siemens advisors

3/ Finally scan and email the requested and signed documents to documentation@orbian.com (sending the original documents by mail isn’t necessary)

 

Contact & Information

Your contact at the Siemens Business is available for further information. In addition the Supply Chain Finance Team of Siemens Financial Services in the US gives further support and advice - for more information click here

China

for Chinese suppliers delivering / invoicing to Siemens in China

 

Program Fee

The only cost of the program is the discount charge that a supplier pays on the face value of the receivable to receive early payment. The current annualized discount rate based on the Peoples Bank of China (PBOC) 1 year Loan Rate:  

 

4.7 % p.a.*

 

* The fixed fee is covering the costs of the program as well as those of the bank providing the fund for the benefit of the suppliers. The underlying interest reference rate depends on the currency of the invoice and is defined in the corresponding contract with CITIBANK, e.g. for RMB invoices the relevant rate is the PBOC 1 yr Loan Rate. The discount rate will be fixed once a quarter on the basis of PBOC 1 yr Loan Rate adapted to the actual interest development.

 

Sample calculation:

A supplier delivers products worth 100k RMB. The payment is due in 90 days (net). When participating in the Chinese SCF program, the supplier will receive the payment 80 days earlier.

 

Discount rate: 4.7% (annualized)

Discount charge: RMB 1,044 (100k RMB x 4.7% x (80 / 360))

Discounted value receivable: RMB 98,956 (cash received by supplier)

Cash flow benefit: RMB 22,222 (payment after 10 instead of 90 days)

[Discount charge as a percentage of the receivable is about: 1%]

 

Criteria to join the program:

1/The supplier needs to be based in People's Republic of China

2/The buying Siemens entity needs to be based in People's Republic of China

4/The ERP system of the buying Siemens entity needs to be connected to the Citi SCF platform

 

How to join the program:

The supplier has to contact his responsible Procurement Manager within Siemens. The Procurement Manager gets in touch with the local Siemens SCF Team which serve as the interface to Citi. 

 

Contact & Information

Your contact at the Siemens Business is available for further information. In addition the Supply Chain Finance Team of Siemens Financial Services in the China gives further support and advice:

Mr. Bernhard Weiskirch: +86 (10) 6476 3899 / mailto: bernhard.weiskirch@siemens.com

Ms. Qi Sun (Keira): +86 (10) 6476 2816 / mailto: qisun@siemens.com

Ms. Qian Yu (Rachael): +86 (10) 6476 6344 / mailto: rachael.qian.yu@siemens.com 

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Australia

… for suppliers delivering / invoicing to Siemens in Australia

 

Program Fee

> 15m AUD: 1.20 % p.a.* + EUR-LIBOR**

> 150k AUD, < 15m AUD: 1.40 % p.a.* + EUR-LIBOR**

< 150k AUD: 2.20 % p.a.* + EUR-LIBOR**

* The fixed fee is covering the costs of the program as well as those of the banks providing the fund for the benefit of the suppliers.

** The underlying interest reference rate depends on the currency of the invoice and is fixed in the corresponding contract with ORBIAN, e.g. for AUD invoices the relevant rate is the BBSW – the negotiated payment term (e.g. 90 days) is relevant for the calculated LIBOR (e.g. 3M BBSW)

 

Sample calculation:

A supplier delivers products worth 1m AUD. The payment is due in 90 days (net). When participating in the SCF program, the supplier will receive the payment 80 days earlier.

 

Discount rate: 1.4% + 2.1% (annualized)

Discount charge: AUD 7,778 (1m AUD x 3.5% x (80 / 360))

Discounted value receivable: AUD 992,222 (cash received by supplier)

Cash flow benefit: AUD 220,494 (payment after 10 instead of 90 days)

[Discount charge as a percentage of the receivable: 0.78%]

 

Criteria to join the program:

1/The supplier needs to be based in one of the following countries

2/The minimum yearly PVO of the supplier should be not less than 75k AUD (or equivalent)

3/ The ERP system of the buying Siemens entity needs to be connected to the ORBIAN platform and offer the currency indicated -  please ask your contact at Siemens or the Supply Chain Finance @Siemens advisors

 

How to join the program:

1/ Please enter the country-dependent Enrolment Code on the ORBIAN portal to get to the online setup form

2/ Then follow the steps described on the page – for any questions please get in contact with the ORBIAN support or the Supply Chain Finance @ Siemens advisors

3/ Finally scan and email the requested and signed documents to documentation@orbian.com (sending the original documents by mail isn’t necessary)

 

Contact & Information

Your contact at the Siemens Business is available for further information.

In addition the Supply Chain Finance Team of Siemens Financial Services gives further support and advice:

 

Helpline: +49 89 636 33144

mailto: supply-chain-finance.sfs@siemens.com (E-Mail öffnen)

Download

Others

... there are several local Supply Chain Finance Programs available, which works similarly than the described ones or even in different ways.

There is e.g. one in Brazil, one in France, one in India and one in Japan. 

Your contact persons in the countries will connect you with the advisors in regards to the local Supply Chain Finance programs.

 

Please feel free to contact as well the Supply Chain Finance Team in Germany for further assistance / information: 

Helpline: +49 89 636 33144

mailto: supply-chain-finance.sfs@siemens.com

Contact & Information

Your contact at the Siemens Business is available for further information.

In addition the Supply Chain Finance Team of SFS gives further support and advice:

Tel.: +49 89 636-33144

supply-chain-finance.sfs@siemens.com