SCF Awards 2023 – Energy

Rea Bosco Vaz

date: December 4, 2023

Insights on the SCF programme of Cepsa, the Winner of the 2023 SCF Awards Energy category.

Winner: Cepsa 

Partner: Santander S.A. 

The Spanish oil and gas company, Cepsa, has won the Energy category of the Supply Chain Finance Awards 2023. Their commendable SCF program, distinguished by its substantial scale encompassing 6000 suppliers and exceeding Eur 6.5 billion, showcased an innovative use of Santander’s payment tools across diverse countries and currencies. Despite the emphasis on innovative payment methods and automation, there’s a notable focus on working capital enhancement within their dynamic discounting framework. 

Sizeable Scale, Strategic Intent 

Cepsa’s SCF program, spanning across Europe and LATAM markets, marks a strategic leap in the company’s financial ecosystem. This sizeable initiative, coupled with the innovative application of Santander’s payment tools, echoes Cepsa’s commitment to pioneering financial innovation and operational efficiency on a global scale. 

Innovation at the Core 

Cepsa’s SCF venture extends beyond traditional SCF paradigms. While the program embodies SCF principles and dynamic discounting, its distinctiveness lies in leveraging Santander’s advanced payment solutions. This innovative approach facilitates seamless transactions across diverse geographies and currencies, leveraging a fully automated end-to-end payment process. 

The Promise of Efficiency 

Though the specifics on the SCF program’s benefits, such as criteria for supplier onboarding or extended payment terms, are less detailed, Cepsa highlights improved working capital benefits. The emphasis on enhancing working capital suggests the program’s potential to streamline cash flows and bolster financial resilience, though additional insights on cost reduction for suppliers and payment term extensions would further elucidate the program’s full scope of advantages. 

Transformative Impact 

Cepsa’s SCF initiative is poised to redefine payment dynamics and drive transformative change in the procurement landscape. By harnessing Santander’s innovative payment tools, Cepsa not only aims for financial efficiency but also positions itself as a trailblazer in harnessing technological advancements for enhancing cross-border financial transactions. 

Cepsa’s SCF case presents a novel fusion of SCF, dynamic discounting, and Santander’s innovative payment solutions, signaling a paradigm shift in payment methodologies across diverse markets. While the program emphasizes working capital improvements, a deeper insight into cost reduction and extended payment terms would augment the program’s narrative, elucidating its comprehensive impact on supplier relationships and financial efficiency. 

As Cepsa continues to chart new territories in the SCF landscape, its innovative payment approach sets the stage for transformative change, steering the company towards operational excellence and financial prowess in a globally interconnected marketplace. 

Rea Bosco Vaz

Rea Bosco Vaz is the Head of Product and Market for the SCF Community and a researcher at the Faculty of Supply Chain Finance at Windesheim University of Applied Sciences, in the Netherlands. Her research currently focuses on combining the fields of geosciences and SCF through the subject of critical raw materials (CRM). Rea also works for the SCF Community on events, marketing and as a liaison to finance and tech providers in the SCF industry.