Supply Chain Finance at Procter & Gamble Spreadsheet Supplement

Benjamin C. Esty; Scott   Mayfield; David  Lane

Supplement | HBS Case Collection | June 2016

Supply Chain Finance at Procter & Gamble Spreadsheet Supplement

by Benjamin C. Esty, Scott Mayfield and David Lane

Abstract

In April 2013, Procter & Gamble (P&G), the world’s largest consumer packaged goods (CPG) company, announced that it would extend its payment terms to suppliers by 30 days. At the same time, P&G announced a new supply chain financing (SCF) program giving suppliers the ability to receive discounted payments for their P&G receivables. Fibria Celulose, a Brazilian supplier of kraft pulp, joined the program in 2013, but is re-evaluating the costs and benefits of participating in the SCF program in the summer of 2015. The firm’s treasury group must decide whether to keep using the program and, if so, whether to keep their existing SCF banking relationship or start a new relationship with another global SCF bank.

Keywords: working capital; supply chain finance; corporate treasury; consumer packaged goods; Cash flow; value creation; supply chain; supplier relationships; banking; liquidity; accounts payable; accrual accounting; Financial Reporting; Cash Flow; Cost Management; Banks and Banking; Financial Strategy; Multinational Firms and Management; Supply Chain Management; United States; Brazil;

Language: English

Format: Electronic

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Citation:

Esty, Benjamin C., Scott Mayfield, and David Lane. "Supply Chain Finance at Procter & Gamble Spreadsheet Supplement." Harvard Business School Spreadsheet Supplement 216-713, June 2016.

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Supply Chain Finance at Procter & Gamble Spreadsheet Supplement

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