Six ways Falcon adds value

Supply chain finance solves the problem of trapped capital but little else. By contrast, Falcon’s third-party ownership solution can address more practical challenges, such as driving sustainability and boosting resilience. From an ESG perspective, inventory can be held in a geographically convenient third-party facility, reducing the need for emissions-heavy emergency air freight or the number of shipments required. In terms of resiliency, Falcon enables companies to enjoy the safety of having a consistent supply of buffer stock to keep production going.

Companies are often forced to choose between an asset-light balance sheet or supply chain security. With Falcon, you can enjoy the best of both worlds. Falcon’s inventory ownership model means you can free up liquidity to pursue only the most strategic activities for your business. We also help ensure you have ready access to key components when you need them. In this way, we combine the peace of mind brought by Just-in-case with the asset-light, liquidity-friendly benefits of Just-in-time.

Falcon delivers financial efficiency by allowing customers to buy inventory on a Just-in-time basis. Reducing the inventory holding period of customers improves the efficiency of working capital, cash flow, and capital usage. Inventory ownership means zero financial engineering, helping customers obtain liquidity without the use of debt instruments and ensuring a healthy asset-light and cash-rich balance sheet.

Holding inventory is rarely, if ever, the core aim of business operations. This is because it creates operational and financial inefficiencies, resulting in high hidden costs for supplier VMI and consignment programs that are passed on to the customer. As a specialist in inventory ownership, Falcon is cheaper and better than your supplier. By leveraging bulk purchases and upfront settlement discounts, we reduce the overall cost to your business to deliver better results for less.

Inventory ownership is onerous and often a source of friction between customers and suppliers who seek to pass this burden on to the other party. Falcon solves this problem by taking on the burden of inventory ownership until it is ready to be utilised. In doing so, we create a win-win solution for both customers (inventory just-in-time) and suppliers (payment upfront) so that they can focus on their core business.

Supplier VMI and consignment programs sound great in theory but are often operationally taxing. For example, a typical car manufacturer has more than a hundred suppliers, which means over a hundred separate negotiations to implement a large-scale program. Falcon’s expertise, agility, and technical solutions mean it can step in as the conduit and interface between a customer and all its suppliers. A single inventory ownership program can be negotiated with Falcon, removing the administrative headache of multiple supplier agreements.