Last year Dints secured a Vendor Managed Inventory (VMI) contract with a prominent African mining client, Gold Fields Ghana. Already live at the Tarkwa mine-site, Dints’ new VMI model tackles inefficiencies within the procurement, supply chain and inventory management functions. Combined with a tailored payment plan, Dints says it “is able to deliver client savings of 20-25%.”

With financing backed by the UK Government, Dints can offer this new service to all geographies and product lines. The benefits of Dints’ VMI model and services include:

• Improved payment terms on operational and capital expenditure
• ‘Pay as You Use’ minimises capital tied up in inventory
• Inventory management control reduces obsolete stock holding
• Streamlined procurement and warehouse management
• Lower procurement costs
• A reduction in equipment total cost of ownership
• Price transparency and fixed prices

Deferred payment terms improving the cash flow can be flexed in either of 3 ways. The first, buyers credit is more appropriate for large Capex spends. Suppliers credit uses bills or promissory notes. The third is structured receivables financed – through the Dints contract – providing balance sheet efficiencies.

Each can be structured as a revolving facility and given the UK government support provides the buyer with:

• Low cost funding (funding costs are priced against the UK Government risk)
• Low cost of carry-financing used as and when procurement takes place
• Additionality of exposure – these facilities do not impinge on your existing bank appetite
• Ability to scale as facility is utilised
• Match currency of contract with currency of supply
• Simple loan documentation (LMA Standard) or against Bills of Exchange/Promissory Notes
• Structured repayment terms that provide positive cash flow

Dints is now in a position to offer new and established clients the VMI service, which can be tailored to suit specific client requirements.