DINTS IMPLEMENTS ITS NEW VMI MODEL TO DRIVE EFFICIENCIES WITHIN THE SUPPLY CHAIN

In 2015, Dints secured a market leading Vendor Managed Inventory contract with a prominent African mining client. Dints’ new VMI model tackles inefficiencies within the procurement, supply chain and inventory management functions. Combined with a structured finance plan, Dints 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:

  • Deferred payment terms
  • Ability to cover OPEX and CAPEX
  • Full inventory management and price transparency
  • Delivering lower costs and reduced total cost of ownership
  • Efficient procurement and stock control
  • Warehouse Management reduces obsolete stock
  • ‘Pay as You Use’ reduces capital tied up in inventory
  • Price Transparency & Fixed Prices
  • Up to 100% deferred payment terms
  • Scalable Solution

“UK Trade & Investment is delighted to support DINTS as they launch their VMI procurement model at this year’s African Mining Indaba.   The need for miners to identify efficiencies and cut costs has never been greater and the DINTS VMI procurement model offers the opportunity to do just that, through managed machinery and wear parts services and financing options aimed at miners across Africa.  UKTI and UK Export Finance have worked with DINTS to develop this product identifying potential UK based suppliers and we look forward to seeing success for DINTS and increased opportunities for the UK’s extensive and innovative mining supply chain.” UKTI

The Dints team at their on-site Ghanaian warehouse

Deferred payment terms improving the cash flow can be flexed in either of 3 ways:

1) Buyers credit – more appropriate for large Capex spend

2) Suppliers credit – using bills or promissory notes

3) 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 existing banks 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 Ethos

  • Openness; Allowing a greater number of market participants
  • Transparency; Ensuring fair pricing and competitive product offering
  • Value; Creating value for our clients through an optimised supply chain
  • Future development and growth; will see transactions and financing taking place through an online aggregator making the operations infinitely scalable by sector and geography

Dints is supplier agnostic, whose structure complements its client’s supply and procurement chain. Dints has multiple access points to an extensive range of OEMs and service providers across the worldwide HME market.

 

Dints is now in a position to offer new and established clients the VMI service, which can be tailored to suit specific client requirements. Please feel free to contact Dints personnel for more information or get in touch through info@dints.com