Manufacturing goods and components is a capital-intensive process requiring heavy machinery, raw material, labour, and other resources. After manufacturers raised a PO for Zetwerk, the company received their dues after 90 days- a gap which made the company’s receivables and payables haywire.
The problem areas Zetwerk encountered included:
- Managing a base of 10,000+ suppliers was a hassle since onboarding and verifying the documentation was exhausting and time-consuming.
- Online and offline vendor management was another problem.
- There existed a lack of transparency when it came to clearing the invoices since Zetwerk would be unaware of where the invoice was stuck. This further increased the turnaround time for the vendor.
- The company wanted to scale their global manufacturing network and required capital infusion for the same, in addition to bringing down its debt.