Together with NORD/LB and Traxpay, Landgard has developed the “Digital Guarantees” tool, which now enables suppliers to individually insure their delivery period. For TraxpayTV, Traxpay CEO Markus Rupprecht visits the growers’ cooperative and talks about current challenges in treasury and how Landgard’s suppliers can benefit from the new SCF product Digital Guarantees.
The Landgard growers’ cooperative uses its own fresh produce logistics to supply large organized retail customers – from DIY chains to food retailers. In doing so, the cooperative ensures sales security for producers on the one hand, while on the other hand Landgard forms a central access element for high-quality goods from first-hand sources. In the spring of 2021, Landgard opened up new distribution and procurement channels as it expanded its business activities. However, the sometimes more restrictive business policy of credit insurers, especially in times of crisis, made it more difficult to work with new partners and finally prompted Landgard to look for an alternative to traditional trade credit insurance for its suppliers.
The digital guarantees are an individual, secure and cost-effective alternative to existing hedges, from which Landgard’s suppliers benefit. While the classic trade credit insurance, for example, runs for one year, digital guarantees offer customized terms. This is particularly advantageous for Landgard suppliers of seasonal products. The guarantees are issued by NORD/LB on the Traxpay platform without paper or analog signatures.
With the new platform, the company orders the payment guarantees digitally. The program allows suppliers to see the status of their invoices at any time and offers the option of having invoices credited in full at the desired time.
Other advantages are that the solution allows a bank to be connected without the need for technical integration and without installing any software, as all functions can be used via an SAP AddOn. The solution creates efficiency through a digitalized warranty process, and fairness as the validity of the warranty can be determined by the supplier.
Click here to watch the video showing the benefits of the platform: https://www.traxpay.com/insights/traxpaytv-digital-guarantees/