A 'Platform Company' represents a systemic change in the strategic business model for the global economy.

a. Outsourcing: Companies like HP, Apple, Dell and Pfizer are more and more focusing on R&D, brand marketing, sales channels, customer acquisition/retention programs, and supply chain financing/logistics. 'Platform Companies' are outsourcing everything else to their supply chain partners including end-customer support.

b. Working Capital: The result is that a 'Platform Company's' primary asset is the working capital to support their supply chain ecosystem. Competitive advantage is being determined by who can create the most cost effective supply chain ecosystem. For example, it is typical that tier II suppliers may be paying greater than 20% p.a. weighted cost of finance for their business. In addition, distributors and resellers in high growth opportunity emerging markets are often capital constrained due to Basel II limitations.

c. Best Practices: SCFCAP's 'Best Practices Supply Chain Scorecard' and our ability to structure unique supply chain finance programs can help unlock new sources of lower cost capital while also help create a more cost advantaged financial supply chain for a 'Platform Company'.