Mynd
39 Case Studies
Case Study: a leading automotive components manufacturer achieves faster MSME vendor payments with M1xchange TReDS
A Mynd Case Study
India’s Leading Automotive Components Manufacturer speeds supplier payments to T+1 with Mynd
The customer, a leading automotive components manufacturer in India, faced a challenge in paying its numerous MSME suppliers within the mandated 45-day period without disrupting its own cash flow or creating inequity among its vendors. Their rigid fortnightly payment cycle often misaligned with this deadline, forcing them to choose between compliance issues from late payments or cash flow strain from early payments. They partnered with the vendor, Mynd, and its M1xchange TReDS platform to find a solution.
Mynd's solution utilized the TReDS platform to allow the manufacturer's suppliers to get their invoices discounted by financiers. Once the manufacturer approved an invoice on the portal, financiers would bid on it, and the supplier could receive payment within a day. The manufacturer would then pay the financier on the original 45-day due date. This approach provided suppliers with immediate working capital while allowing the manufacturer to maintain its payment cycle and cash flow, ensuring compliance and preserving vital supply chain relationships.
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