Jumbo Supports Suppliers With Flexible Access to Working Capital

The Dutch supermarket chain’s award-winning early payment programme frees up cash and provides suppliers with financial stability. 

Established in 1921, Jumbo is the second largest Dutch supermarket chain, with over 45,000 employees and approximately 680 stores in the Netherlands and Belgium. The Dutch supermarket chain’s acute focus on providing customers with easy access to affordable healthy food extends to its suppliers and their financial sustainability, particularly small- and medium-sized enterprises (SMEs).

Jumbo recognised the vital part SMEs play in the Dutch economy and the inherent vulnerability of its smaller suppliers and vendor partners. In 2019, it implemented a solution to support suppliers by offering flexible and affordable access to capital and generating a healthy and sustainable supply chain. 

The challenge

In seeking a new finance programme for its suppliers, Jumbo had the following goals:

• Support suppliers and enable supply chain sustainability
• Provide efficient and inexpensive sources of cash and financing for Jumbo suppliers
• Create meaningful economic impact in the Dutch economy by enabling SMEs

After exploring other options, Jumbo chose to partner with C2FO because of its unique technology, global experience with buyers and suppliers in the retail space and dedication to fair and inclusive working capital solutions for SMEs. 

“Jumbo values good relationships with its suppliers and is continuously looking for ways to strengthen those relationships. Over the past few years, Jumbo has implemented several initiatives to provide suppliers with accelerated access to liquidity, such as the launch of our supplier finance programme and our commitment to the Betaalme.nu initiative,” Jumbo CFO Ton van Veen said. “This early payment programme for our SME suppliers is the next step in contributing to a stable supply chain and to further collaborative growth with our suppliers.” 

The solution 

Through Jumbo’s Early Payment programme, the company continues its journey as a socially responsible enterprise, promoting SME growth and ambitions, creating more jobs, and fostering stability in its supply chain by offering flexible and affordable access to capital.

Netherlands-based Inno Food Company BV is an agent, distributor and wholesaler of brands and products in the food sector. The company uses Jumbo’s Early Payment Programme.

In 2019, Jumbo received an award for its C2FO early payment programme from Europe’s Supply Chain Finance Community Forum. The programme was applauded for helping suppliers, benefiting the Dutch economy and exceeding the fair business standards promoted by the government’s PayMeNow initiative (Betaalme.nu). 

During the COVID-19 pandemic, Jumbo temporarily allowed its SME suppliers to receive early payment at a 0% interest rate through C2FO.  

C2FO’s early payment platform helps Jumbo fulfil its goal of maintaining the long-term sustainability of its supplier network and living up to the requirements of the Netherlands government-backed Betaalme.nu or PayMeNow initiative, which promotes fair payment practices for SMEs. 

The results 

Now, Jumbo suppliers that use C2FO receive early payment by an average of 38.5 days. Jumbo has awarded more than €130 million in early payment to suppliers since the programme’s launch. C2FO executed the implementation in less than four months, requiring only a simple file exchange from Jumbo.