Search
 
Alexander Hamilton Awards

Intel for the ‘Win-Win’

Congratulations to the capital markets team for winning a 2021 Alexander Hamilton Award in the category Working Capital Management: Partner Impact!

Intel wins a 2021 Alexander Hamilton Award in the category Working Capital Management: Partner Impact

Intel thrives in an intricate supply chain of tech companies that span the globe. “Over half of our suppliers are small and midsize businesses,” says Jackie Sturm, corporate vice president of global supply chain operations. “Supply-chain health and continuity are at the forefront of our business practice as we work to support the businesses that power Intel.” To that end, the chipmaker responded to the 2020 pandemic economy by bolstering its supply-chain finance options for smaller suppliers.

Even before Covid-19 hit, Intel offered suppliers a variety of options to support their working capital needs. “The genesis of this was that we were approached by multiple external banks offering to help us with supplier financing,” explains Antoine Hamelin, director of treasury in Intel’s capital markets group. “We have a very strong balance sheet and realized that it made more sense to finance our suppliers ourselves.”

Intel began writing discounting options into its supplier agreements, offering to pay faster in exchange for reductions to the invoice amount. “If they are meant to be paid in 90 days, they can get paid in 10 days for a fixed discount,” Hamelin says. However, the agreements typically let Intel choose how quickly to pay. “So, this doesn’t work for suppliers that don’t want to give Intel the predetermined discount. As we explored other options, we liked the C2FO approach, which provides more flexibility for suppliers.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Meg Waters

Meg Waters

Meg Waters is the editor in chief of Treasury & Risk. She is the former editor in chief of BPM Magazine and the former managing editor of Business Finance.

More from this author

 

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.