Just-in-Time Trade Finance for Retail Giant | CredAble Case Study

Case Summary

A leading Asian retail and consumer goods conglomerate was grappling with working capital inefficiencies caused by prolonged inventory holding and short supplier credit terms. CredAble stepped in to design and execute a pioneering structured trade solution that enabled a 90% reduction in inventory holding and a 2x increase in Days Payable Outstanding (DPO). This case demonstrates the transformative potential of structured trade solutions in driving liquidity, scalability, and operational efficiency across complex supply chains like in the retail industry.

The Challenge

The client was navigating a classic yet critical challenge that plagues many large retailers globally—liquidity locked in warehouses. With over 2 million SKUs stored across 100+ warehouses, the business was facing a dual constraint: long inventory holding periods driven by fluctuating consumer demand and the need to buffer against global supply shocks, combined with short supplier credit cycles that strained liquidity. 

The outcome: working capital was trapped in inventory, impacting the company’s ability to respond swiftly to market opportunities and scale efficiently. .

The Objective

To solve for this mismatch and locked in liquidity, the retailer needed a financial structure that would improve liquidity without disrupting their existing supply chain.  

The following key objectives were identified:  

• Structuring a financing solution that released working capital while preserving supplier relationships 

• Extending Days Payable Outstanding (DPO) without passing on credit risk to suppliers 

• Enabling liquidity enhancement to support future growth initiatives 

• Ensuring seamless, tech-enabled scalability across millions of SKUs and multiple geographies 

The Approach

A strategic and collaborative approach was implemented to address the client’s operational and financial goals. A just-in-time inventory model was selected as the optimal structure. 

To support the scale of the program, multiple financial institutions were onboarded, with each partner’s requirements carefully managed. A comprehensive legal framework was established to ensure compliance, risk mitigation, and audit readiness. 

A dedicated cross-functional team spanning finance, business, legal and technology was deployed to oversee end-to-end execution, while a central entity was created to streamline procurement and optimize supplier engagement. This helped eliminate inefficiencies and enhance liquidity. 

The integration of CredAble’s Structured Trade Platform enabled seamless processing and automation at scale, minimizing manual efforts. Regulatory registrations were secured across key locations to ensure compliance with tax and operational guidelines. 

Know more about CredAble’s Structured Trade Solutions

The Results

CredAble’s Just-in-Time Inventory Solution delivered tangible impact across financial, operational, and strategic fronts. 

• Landmark Deal in Retail Supply Chains: One of the largest inventory-linked trade finance structure implemented in the retail ecosystem in Asia, setting a new standard for innovative financing models and solutions. 

• Accelerated Execution at Scale: The entire solution, from multi-bank alignment to legal structuring and tech integration, was implemented in record time, reflecting CredAble’s deep executional capability and cross-stakeholder coordination. 

• High-Value, High-Volume Enablement: The structure enabled financing of large volumes of inventory in consolidated transactions, streamlining documentation across 10+ banks and eliminating the operational burden of onboarding hundreds of suppliers individually. 

• Strategic Working Capital Gains without Disruption: The corporate achieved a 90% reduction in inventory holding for goods routed through the TradeCo and a 2x increase in Days Payable Outstanding, all while maintaining undisrupted supplier relationships and full supply chain visibility. 

Think Working Capital… Think CredAble!