table of contents
- Supply Chain Finance – the project
- The challenge: blocked liquidity and complex processes
- The PlusAdvance solution: the tailor-made Supply Chain Finance project together with partner BPER Factor
- Concrete benefits for all contributors
- The benefits for Granlatte
- Supply Chain Finance and Confirming: innovation that creates value
- Conclusions
Supply Chain Finance - the project
Managing financial flows in a complex agricultural supply chain such as milk means dealing with extended payment times and inefficient manual processes. The members of Granlatte Soc. Coop. Agricultural They deliver milk daily, but collect invoices only after 30 days: a model that immobilizes liquidity and makes the management of advances complicated.
To solve this challenge, PlusAdvance has activated a digital Supply Chain Finance solution for Granlatte based on confirming, capable of simplifying payments and freeing up immediate liquidity for over 500 farmers.
Supporting the program and strategic partner of the transaction was BPER Factor, a financial counterparty that as part of the confirming operation manages the payment mandates on behalf of Granlatte and allows the contributing shareholders to advance collections in a flexible and on-demand way, without continuous constraints.
The challenge: blocked liquidity and complex processes
The traditional procurement process in food cooperatives involves several administrative steps:
- delivery of raw materials on a periodic basis;
- provisional count of the quantities delivered after a few days;
- final count with specific parameters related to the quality of the product delivered over a longer time horizon (at least the following month);
- payment of invoices on the thirtieth day to maturity.
This model generates three main critical issues:
- Complex management of advances: any advance of the collection requested by the contributing shareholder must be made manually, with high operational complexity.
- Fixed liquidity: it has been calculated that in the specific case of Granlatte, the time linked to the working capital cycle was blocking liquidity to the supply chain for about 50 million euros at all times in the form of trade receivables.
- Fragmented accounting process: the multiple counting steps without any automation make operations inefficient because it requires manual steps by Granlatte’s management.
The PlusAdvance solution: the tailor-made Supply Chain Finance project together with partner BPER Factor
With the intervention of PlusAdvance , a digital platform has been designed and implemented that radically simplifies the process, allowing contributing shareholders to immediately advance up to 70% of the value of the contribution and advance up to 100% after a few days.
The solution was tailor-made, integrating technology and finance into a single tool with the financial support of BPER Factor, which made the financial instrument available, knowing that all operations were already fully integrated with PlusAdvance's information system.
Concrete benefits for all contributors
Thanks to the Supply Chain Finance project with the non-recourse confirming product, Granlatte members have been offered concrete benefits:
- Free choice of advance: each member can decide independently whether and when to advance their credits.
- Minimal bureaucracy: No need to manually submit deadlines, but PlusAdvance handles everything automatically.
- Online disposal without overdrafts: the advances requested by the supplier do not consume its credit lines, making liquidity more accessible.
- Fast cashout: within 2 working days after confirmation of the request.
- Continuous availability: 24/7 platform with dedicated technical support.
- Definitive non-recourse assignment: the credit is transformed into immediate liquidity, freeing up resources for the company's core activity.
The benefits for Granlatte
The cooperative in turn obtains a double advantage:
- operational efficiency: no more manual management of advance requests, with a considerable administrative simplification;
- supply chain stability: members can count on greater liquidity and continuity, strengthening the entire production ecosystem.
Supply Chain Finance and Confirming: innovation that creates value
This project demonstrates how supply chain finance, applied with innovative tools, becomes a real growth engine for production chains.
The role of PlusAdvance has been decisive: we have transformed a complex need (the management of contributions and payments in the dairy sector) into a concrete and scalable digital solution, capable of freeing up millions of euros of immediate liquidity in the supply chain.
The collaboration with BPER Factor has made possible a reference model for the entire agri-food sector, confirming how technology applied to finance is now the lever to simplify processes, improve working capital management and strengthen the link between companies and suppliers.
Conclusions
Granlatte's experience is a virtuous example of how PlusAdvance, through its supply chain finance platform, knows how to bring innovation to complex supply chains such as the agri-food sector.
Confirming, made simple and digital, is not just a financial tool: it is a way to give value to the daily work of members, ensure stability and sustainability, and create a more solid future for the entire supply chain.
Want to learn more about how PlusAdvance can also help your company free up liquidity and optimize payment processes with innovative supply chain finance tools?
Contact us for a demo of our platform.
Press Contacts:
PlusAdvance: ufficiostampa@plusadvance.com
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