Structured procurement solutions

Our inventory procurement and financial solution offers clients the opportunity to significantly improve cash flow while reducing inventory and improving their local black supplier procurement spend

Inventory procurement and
financing solution

Our procurement solution

Our inventory procurement and financing solution will generate significant value from your inventory

The overarching objective of Nebula’s inventory procurement and financial solution is the selective takeover of existing inbound product supplier (international and local) agreements. This includes inventory procurement funding, at preferred payment terms, through local banking institutions and local Nebula warehousing and value-added-services (VAS).

Significant cash flow improvements based on negotiated payment terms

Structured qualifying small enterprises (QSE) and emerging micro enterprises (EME) solution with sale of assets (SOA) opportunity within the supply chain offering

B-BBEE benefit associated with proliferated local black supplier procurement spend

Advanced planning to model Incoterms, supply chain parameters and inventory policies

Inventory reduction off-balance-sheet opportunity

Minimised local warehousing, handling and value-added solution (VAS) costs, moving all logistics costs into a cost of sales (COS) solution, enhancing procurement spend

Headcount reductions related to outsourced warehousing and VAS operations

Efficiency/optimisation opportunities related to inbound logistics, packaging improvements and shipment tracking

Procurement solution benefits

Overview of the benefits and levers to drive value
Strategic

B-BBEE benefits

  • Incremental ‘black local procurement’ spend for our client
  • Enterprise development (ED) and enterprise supplier development (ESD) spend to offset the cost of setting up the operations, via SMMEs and QSEs – ecosystem
  • Ecosystem community-driven solution, reduce infrastructure investment
  • Sale of assets opportunity to help with ownership points and benefits
  • Nebula is a 75% black-owned company, offering optimum B-BBEE procurement recognition through effective structured value-adding services
Financing

Massive cash flow increase

  • Up to 120 days before payment for inbound inventory, freeing up cash
  • Cost of goods can potentially be reduced through better payment terms for suppliers
  • Significant inventory off the balance sheet
  • Headcount reduction: Inventory managed by Nebula on behalf of vendors and not by our client
  • Cash-to-cash improved with banking (funding) sector within ecosystem
Supply chains

Optimisation gains and cost reduction

  • Incoterms, logistics and inventory policy optimisation
  • Packaging and container optimisation and inbound inventory consolidation at source
  • Tracking, enhanced analytics and visibility of inventory across the supply chain
  • S&OP, demand planning and inventory optimisation services, with a level of artificial intelligence (AI)
  • Client and supplier application engagement
Operations

Warehousing/VAS reduction

  • Light manufacturing and VAS included as part of offering
  • Full end-to-end value generated services through eco-system
  • Should enhanced manufacturing be part of the solution; a separate funding and investment model will need to be considered
  • Best practices applied with productivity improvement focus and end-to-end touch logistics solutions
  • Operational systems integrated into S&OP
These are the primary steps to be followed to set-up solution

The process to freeing up cash

Planning

Step one

1. Agree on financing with the bank
2. Sign contracts/service level agreements (SLA)
3. Plan implementation

Implementation

Step two

  1. Implement warehouse/operations
  2. Finalise supply chain financial model
  3. Negotiate with suppliers
Operations

Step three

  1. Daily operations to run smoothly
  2. Financing to be seamless
  3. Business intelligence (BI) dashboards to display key performance indicators (KPIs) and give visibility
Continuous improvement

Step four

  1. Supply chain parameters tested and optimised
  2. Operations enhanced through best practices
  3. Financial model optimised
Scroll to Top