OCI IS INUNDATED WITH BUSINESS FROM LARGE CORPORATIONS WANTING TO DIVERSIFY FROM GREENSILL
Pandemonium in the market has led to a rush of interest in alternative options.
London, UK, March 2021 – With the current news that Greensill Capital is potentially facing insolvency after funds are suspended, multinationals are concerned that this collapse will impact their supply chains. After all, it is crucial to pay suppliers on time for essential inventory and raw materials. As a result, OCI has seen a surge of business today.
OCI is a procurement partner rather than a supply chain financier. However, since the business has strong sourcing capabilities, quality control measures and logistical operations across all continents, OCI are an obvious go to for scrambling organisations. Furthermore, the specialist has the financial might to plug some of the colossal 150 Billion USD funding gap.
Large corporations and governments see OCI as a reliable procurement partner to ensure continuity of their supply chain, whilst also offering credit terms to corporates.
Oliver Chapman, Group CEO of U.K.-based OCI Limited stated, “Since the news broke about Greensill, our phones haven’t stopped ringing. We’ve had calls from Fortune 500 companies to medium sized businesses. Large corporates want to bail out from Greensill and are keen for OCI’s support. They are not only anxious about their suppliers being paid and cargoes being delivered on time, they are also very concerned about their reputation. Prior to the onboarding of any new client, OCI will continue to be very selective about who they choose to partner with for procurement solutions. The fallout from this news is huge and has led to more pandemonium in the economy.”
The Domino Effect
In OCI’s experience, a finished product manufactured by a corporate will require an average of 32 stock keeping units (SKUs) and often involve up to 12 vendors. Each of the 12 vendors may have around 5 sub-vendors. A delay in payment from each large corporate to their vendors will create a delay in cash flow for approximately 60 vendors. This domino effect of late payments will trickle down through the sub-vendors and impact their suppliers. The entire supply chain will be starved of much needed liquidity and cash flows across 60 businesses would be affected, in turn, impacting salaries, interest payments and rent, amongst other general payables. The global repercussions of this multiplier effect will be severe, with potentially 10 million businesses affected, across 175 countries.
OCI is an agile organisation with expertise in purchasing and logistics. The company delivers large volumes of cargo to corporates around the world with the financial capability to bridge the funding void that is being created. This revolutionary model involves paying suppliers in advance, shipping cargos and offering flexible credit terms as required by their partners.
The company is rapidly turning its hands to assisting the domestic and international sourcing of supplies, protecting the vendors who have been derailed by this shocking news.
About OCI
Using its unique procurement, logistics and financing expertise, OCI is already recognised as a global leader in the provision of end-to-end procurement partnering services across the manufacturing, consumables, healthcare, agricultural and industrial sectors.
By linking directly into the supply chains of its partners, OCI’s unique and intelligent business model streamlines its partner’s procurement process, unlocking their true potential.