The Sales & Contract Management department acts as a hub between the operating companies of the Würth Group and its suppliers. By understanding the needs and processes on both sides, the team endeavours to create long-term benefits for both. With this in mind, the team recognised, for example, the need for the new Dynamic Discounting product and took action. Alongside the familiar use of fixed discounting, this product offers suppliers the opportunity to further accelerate payments.
The Dynamic Discounting Platform pilot project was launched in April 2024. Initially, around 50 suppliers and three Würth companies were integrated into the platform. Dynamic Discounting provides the suppliers of Würth companies with a transparent overview of the current status of their invoices and the opportunity to pre-finance them. Through the flexible management of payment targets, they benefit in a very simple and direct way from additional liquidity, for example for their quarterly or annual accounts – and do so without the expense of bank financing.
Three pre-financing options are available:
1. accelerate individual invoices;
2. reserve amounts for specific payment dates; and
3. bring forward all payments to the next possible date.
The Group companies have the advantage of being able to use Dynamic Discounting to negotiate longer payment terms with their suppliers and to further strengthen their relationships with strategically important suppliers. “Dynamic Discounting is a pilot project that benefits all parties involved. Flexible liquidity solutions give both sides more room for manoeuvre to achieve their business goals,” explains Zoran Mihajlovic, Head Sales & Contract Management.
