- Are you confronted to tailor-made demand from your customers?
- How can you take this market demand as an opportunity?
- How is your Company organized to meet this market demand?
- How can magma consult help you to answer those questions?
- What services can be proposed and who should be interested?
- Why is magma consult your best partner to optimize your financial services operations?
- What shall you do next?
Are you confronted to tailor-made demand from your customers?
The manufacturing and distribution industries are more and more confronted with an innovative demand requiring product life cycle solutions or more cost- effective acquisition methods.
End-Users are willing to acquire new equipments through flexible purchasing arrangements allowing an access to the newest technology at any moment.
End-Users are getting a higher learning curve in acquisition methods to:
- Avoid the risk of equipment obsolescence;
- Get a cost structure in line with revenues and Capex/Opex policy;
- Have a long term partnership with suppliers.
How can you take this market demand as an opportunity?
The manufacturing and distribution industries have taken this market trend as a competitive advantage through the set up of dedicated financial services operations .
This structure offers many advantages for the suppliers, e.g.:
- Direct revenue recognition instead of a revenue stream spread over the length of
the contractual arrangement with the Customers; - More volume through swap programmes allowing the Customers to upgrade at any
time their technology, and build a long term customer relationship; - Reduced working capital and dso's.
How is your Company organized to meet this market demand?
Manufacturers and Distributors have answered this market demand by putting together financial offering, usually different from the offering of the competition.
Some Companies have set up their own captive leasing organisation, others have outsourced partially or totally their financial services on a disclosed or undisclosed basis.
Finally some Companies have decided to keep their own branding and sell the lease contracts to the financial institutions on the capital markets.
However many Companies willing to use these financial services as a competitive advantage wonder today if their actual set up brings the highest added value.
Questions arise like:
- Does my current structure optimise my financial objectives?
- Is outsourcing a good alternative? And how to keep own branding in this case?
- Who shall I appoint as Financial Services Operator?
- Which financial product range will best meet my Company's goals and the customers demand?
- How should I promote this tool internally?
- How to control outsourcing contracts and operations?
- What is the real impact on my sales and margins?