Sogo part­ners RHB Bank on pay­ment so­lu­tions to sup­pli­ers

The Sun (Malaysia) - - SUNBIZ - BY EE ANN NEE

KUALA LUMPUR: RHB Bank Bhd has signed an agree­ment with Sogo (KL) Depart­ment Store Sdn Bhd to mark a part­ner­ship for the RHB Fi­nan­cial Sup­ply Chain (RHB FSC) that pro­vides Sogo’s sup­pli­ers a con­ve­nient and seam­less on­line plat­form for fi­nanc­ing and pay­ment so­lu­tion.

Start­ing with a RM10 mil­lion fa­cil­ity, RHB Bank will pro­vide fi­nanc­ing to Sogo’s sup­pli­ers, al­low­ing sup­pli­ers to have ac­cess to ac­cel­er­ated pay­ment with­out the need for col­lat­eral. De­pend­ing on the take-up, RHB Bank is ready to ac­com­mo­date more for Sogo, hing­ing on Sogo’s strength as a strong re­tailer.

Sup­pli­ers will get paid fast, re­duc­ing their day sales out­stand­ing. By un­lock­ing value from re­ceiv­ables, sup­pli­ers will be able to fo­cus on ac­tiv­i­ties to im­prove their bot­tom line. The RHB FSC will also fa­cil­i­tate pay­ment of in­voices for Sogo while pro­vid­ing sup­pli­ers with full vis­i­bil­ity of their re­ceiv­ables, thus al­low­ing easy rec­on­cil­i­a­tion.

RHB group man­ag­ing di­rec­tor Datuk Khairus­saleh Ramli said RHB FSC is de­signed to ease work­ing cap­i­tal needs for sup­pli­ers. Through the plat­form, Sogo and its sup­pli­ers will be able to strengthen their end-to-end sup­ply chain ar­range­ment.

“Sogo is a long-stand­ing client and we al­ready have some bank­ing re­la­tion­ship with them and we’re now ex­tend­ing this to sup­pli­ers. With this part­ner­ship, it will en­able us to pen­e­trate into a big­ger list of sup­pli­ers within Sogo, in the form of cur­rent ac­count, credit fa­cil­ity and more,” he told a press con­fer­ence at the sign­ing cer­e­mony here yes­ter­day.

Sogo group chair­man Datuk Mo­hamed Khadar Mer­i­can said it has over 1,000 sup­pli­ers and if 80%-90% of sup­pli­ers use the FSC, the plat­form has the ca­pac­ity to trans­act up to RM500 mil­lion over a year.

“The plat­form will fur­ther en­hance its ecosys­tem in pro­vid­ing ef­fi­cient sup­ply chain man­age­ment to its sup­pli­ers. It will as­sist sup­pli­ers to man­age their cash flow bet­ter and lead to a greater re­li­a­bil­ity and cer­tainty of sup­plies to Sogo.”

Through the FSC plat­form, sup­pli­ers can bet­ter man­age their cash flow and in­ven­tory at rea­son­able cost, while en­joy­ing a sim­ple and seam­less process.

Sogo is look­ing at chalk­ing up about RM600 mil­lion sales at its Sogo KL store this year, sim­i­lar to that of last year, as it sees a slight uptick in con­sumer sen­ti­ment.

It plans to open seven to eight stores over the next five years in Malaysia, in­clud­ing in Pe­nang, Jo­hor Baru, Kuala Tereng­ganu, Shah Alam and more.

“Each store should be cash flow pos­i­tive within 18 months,” said Khadar.

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