Supply Chain Financing
What you need to know:
On July 1, 2013 P&G implemented a new standard payment terms policy to harmonize our terms to a global standard of minimum net 75 days for all our External Business Partners (EBP) where legally allowed. The deployment of this policy is being implemented in a phased approach across our global supply base.
- P&G has a target payment terms of 120 days for all external business partners domiciled outside the European Union, where legally permitted. For external business partners domiciled within the European Union, P&G’s standard payment terms are 75 days. In every country where there are restrictions, P&G will abide by those.
- Payment terms will be applied as contractually agreed with each supplier when P&G receives a compliant invoice from the supplier. For external business partners enrolled in a digital invoicing platform, Payment Terms will begin on the date of the invoice.
- Invoices due on a weekend or on a local holiday will always be settled on the following workday.
As part of our desire to maintain a strong working relationship with our suppliers, P&G invested in 2 programs that may be available to you:
1) SUPPLY CHAIN FINANCING: P&G has worked with world class global financial institutions to create an optional program that offers the flexibility of receiving early payments against approved invoices. This new capability will be enabled by a P&G endorsed supply chain financing (SCF) solution:
This program will provide you the option of receiving payment in as little as 15 days from invoice receipt, with the goal of improving your cash position and reducing your debt.
More information on the optional programs
How to get more Information/training/ask questions? Bank Contacts and WebEx conference/training details are available from each bank. More information on the bank specific websites that support your country
Banks Available by Region
- If your Headquarter Location is one the below regions, then these banks can provide you a global solution based on their footprint
- Regardless of your location, if you sell to a P&G Legal entity based on these regions, these banks can provide you the solution for this buying region
- Americas: Citi and JPMorgan
- Europe/Middle East/Africa: Citi and Deutsche Bank (DB)
- Asia (excluding China, HK, Malaysia, Thailand): Citi and Deutsche Bank (DB)
- China, HK, Malaysia, Thailand: Citi and JPMorgan
2) ELECTRONIC INVOICING: Additionally, P&G is offering electronic invoicing options. Electronic invoicing improves your Procure to Pay experience with P&G. Information is available in this link under P&G Invoicing Methods > Electronic Invoicing.