Perodua and CIMB Group signed a Memorandum of Understanding (MOU) hours ago that will enable the carmaker’s vendors to enjoy “end-to-end supply chain financing” that will increase their liquidity and help their working capital management. This financing program is the first of its kind in Malaysia.
How does this “end-to-end” financing scheme benefit the vendors? Supply chain financing is divided into 2 parts – pre-delivery financing and post-delivery financing. The former is when the vendor needs financing for raw materials to make the parts, while the latter is when the parts are already delivered to Perodua, but without payment coming in yet. “This scheme will finance the gap,” said Dato’ Charon Wardini, Deputy CEO, Corporate & Investment Banking, CIMB Group.
In pre-delivery stage, vendors obtain financing based on monthly order value to pay for raw materials while post-delivery financing is obtained upon submission of invoices and documents to Perodua. Upon maturity of the invoices, Perodua will pay CIMB to settle the vendors’ financing. Which means instant cash to them, which is not the case normally.
The financing will provide vendors with cashflow to buy raw materials, produce the parts and focus on next month’s order. “Better cashflow can lead to better productivity,” said Aminar Rashid Salleh, Perodua’s MD. SMEs can find it hard to find financing, and this scheme, which comes with “competitive and reasonable rates”, makes it easy for approved Perodua vendors, the panel explained.
Perodua has a total of 141 vendors which it helped develop with tech training and tech transfer. Aminar points out that local content in Perodua’s cars has increased through the years, from 47% in the Kancil to 80% with the Myvi. The Viva had 85% local content when it rolled out in 2007 while the latest Alza has 90%. The Rawang based carmaker is estimated to purchase RM3.8 billion worth of parts from local vendors this year.
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Well, as long as they don’t abuse the system. Please make good quality parts that’s on par with world standards!
What a step backwards!!!! By doing this, P2 or latter P1 cashflow will be kaput. They have to pay first upon maturity of invoices regardless of the product had turn into sales or WIP or rejected.
Looking at this:
– vendor will benefit from prompt payment – most of vendors are cronies
– out of the blue, CIMB will benefit from credit financing – Head CIMB u know who….!!!!!
– P2 definitely cashflow teruk la.
Hmmm… hope perodua can really ‘produce’ car year
…Next year…
No!! is 50years!!
we just hope……….hope………hope….
pray hard!!!!!!
go buy lancer la
go buy house better la
Then why are you here? Go myproperties.com or sth la.
pls be noted……this is a car thread forum……
pls be noted……this site is for car thread discussions……
Now for Perodua vendors after all the petrol station case??
really don’t see where this is going. unless they launch new an better models, say a hot hatch. currently only got myvi, viva and alza. aside alza, they really need a new fresh car.
common toyota, don’t be such a cheap skate.
hey….borres.
i dont one talk much. i m lazy of it!
i just wanna tell u.
we just can do hope hope hope…………….. :)
New ? Fresh ? Better?
Go tell this to P1 cos their Savvy / Satria / Waja and Perdana
are all dinosaurs !!!
Satria a dino? It’s only a few years old!
satria neo is 4years old nw.
japan is 5years, after tat will stop production.
but neo still dont have new facelifted. except the neo lotus.
proton R&D sucks!!
and the real winner is CIMB again.
guys!!
i wan the video klip of Perdana V6 was tested by Britain’s Top Gear magazine in April 1999.
pls send me the website.
thanks….
Viva really fair badly with head on collision with Kia car which overtook.
lets hope this is the dawn of local compact car empire
bring in the Move, Move Latte, Materia, Terios Kid, Copen, Esse, Mira Cocoa and Tanto
it is like a financial buffer to the suppliers – sub-contractors. sometimes payment comes in early, most of the time, late. it is good for the sub-contractors and suppliers. therefore, don’t need to wait for money in hand or exhaust credit limit before can make purchase of raw materials. of course, CIMB stand to gain from trade-financing (LC charges etc.). other banks should opt the same scheme too with the next biggest car manufacturer – proton. the only thing remains to be seen, how does it translates into better product for the end-user.
Hehehe…better for P2…next year will be tougher for P2 to hold on to their top spot as P1 will started to roll out theirs WAJA and V6 replacement. With good styling and reasonable pricing, I’ll bet P1 will start to lead next year…
and consumers enjoy anti-competition pricing from proton
wow.. vendor P1 dgn P2 lain meh??