Supply Chain Finance

Finance for a strong supply chain. Supply Chain Finance @ Siemens Energy has been developed by Siemens Financial Services (SFS) especially for selected Siemens Energy suppliers. Being a multibank solution, Supply Chain Finance @ Siemens Energy 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.

Supply Chain Finance – an alternative form of finance

The Supply Chain Finance @ Siemens Energy Program helps to improve the cash flow of selected Siemens suppliers and optimizes their working capital. The cooperation between Siemens Energy 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 Energy has opted for Orbian*, one of the leading companies in the field of supply chain finance solutions. Through its Internet-access for Siemens Energy suppliers the Orbian platform offers a very efficient and user friendly interface.

*Siemens Energy 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

Watch our Supply Chain Finance Video to understand the program in only 100 seconds.

Summary of supplier benefits

Cash flow improvement 

Selling Siemens Energy receivables to Orbian means getting paid fast: 2 days following the sale.

Working capital optimization

Sale of receivables for non-recourse cash improves liquidity, reduces Days Sales Outstanding (DSO) and improves the debt/equity ratio.

Cost reduction

Get automatic payments for invoices once they are approved and reduce Account Receivable costs relative to Siemens Energy receivables.

Transparency of cash flows

Suppliers can view the approved payments (receivables) immediately on their SCF web portal and see payment amounts and dates at an early stage.

Supply Chain Finance at work

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

Supply Chain Finance Program

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 Energy 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

… for suppliers delivering / invoicing to Siemens Energy 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 Energy:

> 10m EUR: 1.70 % p.a.* + Euribor**

> 100k EUR: < 10m EUR: 1.90 % p.a.* + Euribor**

< 100k EUR: 2.70 % p.a.* + Euribor**

* 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 Euribor – the negotiated payment term (e.g. 90 days) is relevant for the calculated Euribor (e.g. 3M Euribor). The Euribor is determined daily in London. 

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: 5.70 % p.a. (1.90 % p.a. + Euribor (e.g. 3.80 % p.a.))

Discount charge: EUR 12,667 (1m EUR x 5.70 % x (80 / 360))

Discounted value receivable: EUR 987,333 (cash received by supplier)

Cash flow benefit: EUR 219,407 (payment after 10 days instead of 90 days)

[Discount charge as a percentage of the receivable 1.27 %.]

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 Energy entity needs to be connected to the ORBIAN platform and offer the currency indicated - please ask your contact at Siemens Energy or the Supply Chain Finance @ Siemens Energy advisors

How to join the program:

  1. Search your country-dependent Enrollment Code in this list
  2. Please enter the country-dependent Enrolment Code on the ORBIAN portal to get to the online setup form
  3. 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 Energy advisors
  4. 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 Energy Business is available for further information.
In addition the Supply Chain Finance Team of Siemens Financial Services gives further support and advice:

 

Helpline: + 89 780 51222
mailto: supply-chain-finance.sfs@siemens.com

… for suppliers delivering / invoicing to Siemens Energy 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 Energy:

> 500k USD: 2.00 % p.a.* + SOFR**

> 300k USD: < 500k USD: 2.25 % p.a.* + SOFR**

< 300k USD: 3.00 % p.a.* + SOFR**

* 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.

** SOFR + credit adjustment spread. 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 SOFR – the negotiated payment term (e.g. 90 days) is relevant for the calculated SOFR (e.g. 3M SOFR)

Sample calculation:

A supplier delivers products worth 1 million 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: 7.70 % p.a. (2.00 % p.a. + SOFR (e.g. 5.70 % p.a.))

Discount charge: USD 17,111 (1m USD x 7.7% x (80 / 360))

Discounted value receivable: USD 982,889 (cash received by supplier)

Cash flow benefit: USD 218,420 (payment after 10 instead of 90 days)

[Discount charge as a percentage of the receivable: 1.71 %.]

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 Energy entity needs to be connected to the ORBIAN platform and offer the currency indicated - please ask your contact at Siemens Energy or the Supply Chain Finance @ Siemens Energy advisors

How to join the program:

  1. Search your country-dependent Enrollment Code in this list
  2. Please enter the country-dependent Enrolment Code on the ORBIAN portal to get to the online setup form
  3. 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 Energy advisors
  4. 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 Energy 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 please contact scf-americas.sfs@siemens.com

… for suppliers delivering / invoicing to Siemens Energy 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 Energy:

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

> 300k CAD, < 500k CAD: 2.00 % p.a.* + CDOR**

< 300k CAD: 2.75 % 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 1 million 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: 7.25 % p.a. (1.75 % p.a. + CDOR (e.g. 5.50 % p.a.))

Discount charge: CAD 16.111 (1m CAD x 7.25 % x (80 / 360))

Discounted value receivable: CAD 983,889 (cash received by supplier)

Cash flow benefit: CAD 218,642 (payment after 10 instead of 90 days)

[Discount charge as a percentage of the receivable: 1.61 %.]

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 Energy entity needs to be connected to the ORBIAN platform and offer the currency indicated - please ask your contact at Siemens Energy or the Supply Chain Finance @ Siemens Energy advisors

How to join the program:

  1. Search your country-dependent Enrollment Code in this list
  2. Please enter the country-dependent Enrolment Code on the ORBIAN portal to get to the online setup form
  3. 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 Energy advisors
  4. 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 please contact scf-americas.sfs@siemens.com

for Chinese suppliers delivering / invoicing to Siemens Energy 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 is benchmarked to LPR (Loan Prime Rate), but adjusted based on market liquidity, bank's cost of funding and Siemens credit rating.

Current discounting rate as below:
Financing days < 210 days
Auto financing: 3.6 % p.a.
Manual financing: 4.1 % p.a.

Financing days >= 210 days
Auto financing: 3.8% p.a.
Manual financing: 4.3% p.a.

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: 3.6 % (annualized-auto financing mode)
Discount charge: RMB 800 (100k RMB x 3.6 % x (80 / 360))
Discounted value receivable: RMB 99,200 (cash received by supplier)
Cash flow benefit: RMB 22,044.44 (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 Energy entity needs to be based in People's Republic of China
  3. The ERP system of the buying Siemens Energy entity needs to be connected to the Citi SCF platform
  4. Contract currency needs to be RMB

 

How to join the program:
The supplier has to contact his responsible Procurement Manager within Siemens Energy. The Procurement Manager gets in touch with the local Siemens Energy 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:

Ms. Jie Fang Wu: +86 (10) 8637 6712
mailto: jiefang.wu@siemens-energy.com

Download

China / CITI Supply Chain Finance @ Siemens Energy

… for suppliers delivering / invoicing to Siemens Energy in Australia

Program Fee

> 15m AUD: 2.50 % p.a.* + BBSW**

> 150k AUD, < 15m AUD: 2.70 % p.a.* + BBSW**

< 150k AUD: 3.50 % p.a.* + BBSW**

* 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 BBSW (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: 6.60 % p.a. (2.50 % p.a. + BBSW (e.g. 4.10 % p.a.))

Discount charge: AUD 14,667 (1m AUD x 6.60 % x (80 / 360))

Discounted value receivable: AUD 985,333 (cash received by supplier)

Cash flow benefit: AUD 218,963 (payment after 10 instead of 90 days)

[Discount charge as a percentage of the receivable: 1.47 %.]

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 Energy entity needs to be connected to the ORBIAN platform and offer the currency indicated - please ask your contact at Siemens Energy or the Supply Chain Finance @ Siemens Energy advisors

How to join the program:

  1. Search your country-dependent Enrollment Code in this list
  2. Please enter the country-dependent Enrolment Code on the ORBIAN portal to get to the online setup form
  3. 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 Energy advisors
  4. 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: + 89 780 51222
supply-chain-finance.sfs@siemens.com

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

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: + 89 780 51222
mailto: supply-chain-finance.sfs@siemens.com

Contact & Information

Your contact at the Siemens Energy Business is available for further information.
In addition the Supply Chain Finance Team of SFS gives further support and advice:
Tel.: +49 89 780 51222
supply-chain-finance.sfs@siemens.com

Direct Contact Europe

Friedemann Kirchhof